Vernon Smith and Steve Gjerstad on Housing and the Never-Ending Recession

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Vernon Smith and Steve Gjerstad on Housing and the Never-Ending Recession

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"All [economic] recoveries are associated with recoveries in housing…except for the Great Recession, this last one," says behavioral economist and Nobel Prize winner Vernon Smith.

Smith and colleague Steve Gjerstad spoke at Reason Weekend, the annual donor event held by Reason Foundation (the nonprofit that publishes this website). They argue that the recession is far from over and that the lingering effects of the collapsed housing market will be felt for years to come. 

Approximately 35 minutes. Filmed by Alex Manning and Meredith Bragg. Edited by Zach Weissmueller.

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Comments

[DesigNate]

"...except for the Great Recession..."

Maybe we haven't recovered from it yet?

[VG Zaytsev]

History will refere to this period of time as Obama's depression.

[Irish]

No, because left wing professors will be claiming that Obama saved us from a far worse fate.

[An0nB0t]

They only extend that courtesy to lefty warmongers. Granted that Barry O has plenty of time to pull a Wilson and secure his place in history by getting thousands of American boys killed at great expense to the rest of us, but if he doesn't, he's going to be as forgettable as that peanut farmer who preceded Reagan.

And given that Obama is essentially a conservative (in the worst possible sense of the word) milquetoast whore, I don't foresee any major wars in our future.

[C. S. P. Schofield]

"And given that Obama is essentially a conservative (in the worst possible sense of the word) milquetoast whore, I don't foresee any major wars in our future."

Said WHAT?!?!

Given that Jug Ears seems determined to get us mixed up in every middle easter piss-up going, albeit on the fringes so far, that seems a very strange statement to make.

[An0nB0t]

Does any part of you believe that Obama possesses the willingness to engage in a major ground war that will cost thousands of American lives rather than engaging in bombing campaigns or just sending out a few drones to murder, well, whomever?

[C. S. P. Schofield]

Willingness? I have my doubts. Ability to keep us out of a full-blow conflict that he blundered into? No! He hasn't got that.

[DarrenM]

I'd have to agree with this. War then becomes like some video game. People are just blips on a screen whose only role is to die quietly and without a lot of fuss.

[Isaac Bartram]

Right, the same way it refers to 1929-194? as Roosevelt's depression.

Oh wait, they don't.

[Kendall Rigdon]

I could not agree more. Our culture has been directed by the self-interests of the Wall Street culture. I did not have the time to watch the entire lecture, but I have studied some economic history and find Mr. Smith's conclusions on target.

Wall Street never creates wealth. It creates the illusion of wealth for the price of suffocating debt. We don't teach simple economics. Our credit based society is the problem. If you want to be free from the affect of governmental snafus, engage in the following;

1. Ditch all debt, consumer or otherwise. Pay it off or sell it, but don't pay someone to use their money.

2. Find an area where you can realistically buy land and then build your own home at cost. Mortgage debt is the largest individual debt. With discipline, you can do this. Most land prices deflate dramatically with a simple move of 10-15 miles in location.

3. Save up 3 months of income for an emergency in cash.

4. Stop paying high prices for low co-pay health insurance. Buy a cheap policy with a $5,000.00 deductible for catastrophic illness and then pay as you go. You will get better health care from doctors and will give less money away.

Once you have no debt and no mortgage, you can be master of your own destiny. Who cares what Wall Street bungles when you are independent and free!

[?J?? de ?guila]

"PROPERTY TAX DUE"

[Kendall Rigdon]

It is true that one is still beholding to local government for local property tax. However, it is a far better situation, where one can more easily influence local politics than those behind close doors in Washington D.C.

[Mike M.]

Credit isn't the real problem, leverage is.

[Gorilla tactics]

This

[Libertarius]

You're a dumbass brainwashed by the left. Wall Street organizes the capital which makes the production of wealth possible, while it is the government (via the Fed) which creates nothing but debt and destruction.

[Kendall Rigdon]

Really? Then show your real name.

I own two small businesses. I have a law degree and I employ about 18 people. Do you?

I suspect not. Wall Street does not create wealth. It creates fictional ownership of potentially valuable assets, which are highly volatile where the investor has no control.

Next time, at least hide your lack of understanding and acumen by at least refraining from slurs.

[Sevo]

"I own two small businesses. I have a law degree and I employ about 18 people. Do you?"

Yippy, skippy! You're still a fantasist.

[Cheradenine Zakalwe]

Can anyone tell me when Bill Maher shows up in this video? I'm short on time.

[VG Zaytsev]

Towards the end. In a panel discussion he blames the panic of 08 and the Iraq war on creepy libertarian obsessions.

[The Late P Brooks]

I'm watching Fox.

Asa Hutchinson apparently wants the Education Department to be incorporated into DHS, to more effectively secure our schools. Perhaps gun towers, barbed wire and mine fields in combination with platoons of militarized goose stepping policemen will provide an ironclad guarantee no student will ever die on school property.

Chris Wallace seems to be headed toward a call for Australian-style confiscation, because even if we harden the schools, movie theaters will remain a daily target for mass murderers. Also parks, shopping malls, and hair salons.

[Sevo]

"militarized goose"
Ooops, misunderstood:
http://www.google.com/search?h.....;4205;3714

[?J?? de ?guila]

Don't forget the barracks, er, cell blocks for student "residency".

[?J?? de ?guila]

Segregated by race, religion and gender of course, so no group feels slighted.

[Ted S.]

I think we need to concentrate our children into camps, which are easier to secure. And teaching them to work will be an important lesson in making them free.

[The Late P Brooks]

Ninety per cent of Americans, it is claimed, apparently believe the government is capable of devising and administering a perfect system of universal background checks.

[VG Zaytsev]

89% of Americans haven't thought about the issue for more than 5 seconds.

Pollster "Do you support background checks to keep guns out of the hands of convicted criminals"

Average American Sure, that sounds like common sense.

[The Late P Brooks]

Hutchinson also said, "Teachers should teach, and guards should guard." I could hear the prison guards' union cheering from here.

[Boisfeuras]

Sed quis custodiet ipsos custodes?

[The Late P Brooks]

Nice. Krugabe just claimed there is no correlation whatsoever between regulations and jobs.

[VG Zaytsev]

He also repeated the lie that labor force participation rates are declining because of retiring baby boomers.

[fish_remote]

The banking/goverment cartel has a video of Krugman anally raping a 6 year old Haitian prostitute....he'll continue to be a reliable voice for more of the same!

[Ted S.]

I didn't know Krugabe was a reliable voice for raping 6-year-old Haitian prostitutes.

But then, I don't pay much attention to him.

[The Late P Brooks]

I was afraid this thread might not degenerate into a racist trollfest.

Phew.

[Sevo]

Boy, that was quicker than a mop-up on aisle 5!
Mike's awake today!

[VG Zaytsev]

Candy Crowley is interviewing the Governor of CT about gun control.

What a fucking lying moron this guy is.

[The Late P Brooks]

I'm reasonably certain the governor of Connecticut would, if waterboarded he thought he could get away with it, admit to a desire to confiscate and destroy all firearms currently in private hands.

[VG Zaytsev]

I wish that the fuckers would just have the honesty to say that.

[An0nB0t]

B-b-b-but they respect the great American tradition of hunting and responsible firearms ownership!

Only DiFi is stupid/brazen enough to admit to desiring confiscation.

[The Late P Brooks]

Looks like somebody was urgently needed elsewhere.

[alice846]

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[C. S. P. Schofield]

Is it odd to suggest that the recession isn't over because most indications I see referred to that the economy is 'turning around" are fairly transparent lies put out by the present administration and passed on without criticism by a media that I would respect more if they would simply blow the sonofabitch on national TV, instead of trying to pretend?

Also; the housing mess was largely caused by political pressures and policies of the Federal Government, almost all of which are still extant. I know that that doesn't necessarily HAVE to prolong a recession, but I have to think it doesn't help.

[An0nB0t]

It wasn't just Reno and her merry band of egalitarian idiots who delivered the disaster (which, in an absolutely unprecedented stroke of fate, resulted in the greatest harm done to the people the political class proposed to help). Politicians at the state and local levels played a massive role with restrictive housing laws, and virtually none of those policies have changed, either, as no one with a SoCal McMansion will stand for having his property value devastated by housing liberalization.

[Gorilla tactics]

open space laws right? dunno specifics im a fureinor

[susandaved]

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[Suthenboy]

Kathryn said you were shocked? Why would she say that?

[Sevo]

'Cause Kathryn stuck a cattle prod up her butt.

[WomSom]

ZGood to see someone is making sense of it all!

http://www.NetAnon.da.bz

[harry90]

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[Big Chief]

The Podcast link for this is broken. Please repair.