This is the power of Austrian Economics in action.
Precise identification of inflationary bubbles years before they undergo collapse. Your jaw will hit the floor as Paul lays out the reasons why the collapse will occur and even points out the culprits who will be involved – namely Fannie and Freddie.
Ron Paul is currently predicting the collapse of the US Dollar.
My money (or rather Bitcoins) is on Paul.
Of course, why post just one Austrian economist predicting a housing collapse when I can post two!
Here is Peter Schiff of Europac back in 2006.
Stop listening to the Keynesian lairs.
For comparison, here is Krugman’s analysis:
October 7, 2001
“Post-terror nerves aside, what mainly ails the U.S. economy is too much of a good thing. During the bubble years businesses overspent on capital equipment; the resulting overhang of excess capacity is a drag on investment, and hence a drag on the economy as a whole.
In time this overhang will be worked off. Meanwhile, economic policy should encourage other spending to offset the temporary slump in business investment. Low interest rates, which promote spending on housing and other durable goods, are the main answer. But it seems inevitable that there will also be a fiscal stimulus package”
What a dumb ass.