Yes, There Was a Housing Bubble Identifiable at the Time

Paul Krugman rolls the videotape:

Wrong To Be Right: Yves Smith says most of what needs to be said about the Boston Fed study saying that nobody could have called the housing bubble. I’d just add that it’s helpful to look at what we knew back when. Here’s a picture from Kash of house prices up to early 2005; by the way, these were OFHEO prices, which most now believe understated the rise, which was better shown by Case-Shiller. But here’s what it looked like.... Given this kind of...