Love her or hate her, powayseller has been right so far. She’s one of the first ones to write about the liar loans and to predict the implosion of the subprime lenders. She also predicted the new lending guidelines we are now hearing about in the MSM.
Roubini is an academic at NYU. He’s not selling anything but his advice. Wall Street economists all have something to sell.
Wall Street or industry economists are always optimistic in a circumspect way. They’d say something like “I expect real estate prices to turn around in 2008 ahead of the elections. But changes in the mortgage business may affect the ability of some buyers to enter the market. If a family wants to own a house they need to start saving for a down-payment today. A good down-payment will assure that they get into the house their want to raise their kids.”
Human nature is such that we never want to hear the bad news. We’d rather get the wishy-washy talk.
Personally, I admire the people who go out on a limb give it to us like it is.
