Monday, October 14, 2013

Two Nobel Prize Laureates Have "Seen It Coming"

If the Norwegian housing market turns out to be a bubble, we're not able to say "No one saw this coming!". Not just one, but, as of today, two Nobel Memorial Prize laureates in Economics have warned that from what they have seen, it looks like there is a housing bubble in Norway! (As far as I know, no one has asked the other laureates what they think...)

Robert Shiller, who got his Nobel Prize today, expressed his concern already one year ago.

In May this year it was Vernon Smith's turn to warn Norwegians about a housing bubble while on a lecturing tour at University of Oslo.

What makes this even more serious is that these gentlemen have devoted much of their time to studying bubbles and market mechanisms that lead to bubbles. So we're not talking about opinions expressed outside their domain - these are some of the foremost "bubble experts" in the world. It's not like Paul Krugman sharing his opinion on the Scandinavian snus (tobacco) producers' finances.

Come on, Torbjørn Eika and Jan Ludvig Andreassen! Can't you even admit that it could be a bubble?

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