The Joe Walker Podcast cover image

Housing Bubble Week Epilogue: Not All Bubbles Are Created Equal - Vernon Smith

The Joe Walker Podcast

00:00

The Macroeconomic Consequences of Housing Busts

Ed Lema: Eight out of the 10 post-war US recessions were led by housing with a false positive and a false negative. In those situations, the central bank also doesn't lose control over the housing market through lower interest rates. But if balance sheets are badly damaged, you see lowering interest rates not going to help. And it doesn't bring that demand back. For many societies, it brought Japan to its knees.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app