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Subject:  Re: No Bond Bubble Exists Date:  2/5/2013  7:03 AM
Author:  FastMike Number:  415091 of 481980

"...One peculiar legacy of the financial crisis is that, among the financial commentariat, there is a tendency to see a bubble whenever the market for a particular asset rises..."

Dear(est) PM:

Check out this quote from Bloomberg Businessweek, circa 2005:

"...I don't foresee any national decline in home price values. Freddie Mac's analysis of single-family houses over the last half century hasn't shown a single year when the national average housing price has gone down. The last consistent drop was during the Great Depression, when the unemployment rate got up to 25%, or five times the level we're at now..."---- Freddie Mac Chief Economist Frank Nothaft,

Taking the other side of the argument was economist Dean Baker:

"...We've never seen this sort of run-up in home prices in U.S. history. In the past, home prices have always moved pretty much at the same rate with inflation's overall