June 30, 2011
USA Today told readers that:
“economists say it could be several years before the nation’s housing market recovers.”
This is probably referring to the views of economists who did not see the housing bubble. Economists who saw the housing bubble know that house prices are still about 10 percent above their trend level. This means that they do not expect the housing market to recover in terms of prices rising back to prior levels. They expect further price declines until the market returns to trend levels and then subsequent increases in step with the overall rate of inflation.
It would be helpful to readers if USA Today did not rely exclusively on economists who managed to overlook one of the largest asset bubbles in the history of the world.
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