Remember the Cal Poly Professor who wrote a paper refuting the housing bubble?

[temeculaguy]

The original paper wasn’t from Cal poly anything, it was from Pomona College (1500 student liberal arts college), and of the three authors, only Gary Smith is still listed on the website as part of the faculty. Maybe the other two went full time into real estate.

http://www.economics.pomona.edu/staff.html

At least they acknowleged in their introduction that UCLA, Yale and Princeton professors all argue there is a bubble, but of course they must be smarter because room and board is 50k a year, just like the big boys. If those were my professors I would demand a refund. I’ve always maintained that the only skills I retained from college were research and filtering (learning to filter through all the crap that most professors spew).

I’d almost expect it from an obscure college smaller than most high schools, but the knuckleheads at Wharton have me suspicious that they were vying for a new building, maybe the Mozillo wing was on the drawing board.

[bubble_contagion]

“This research was supported by the John Randolph Haynes and Dora Haynes Foundation”

John and Dora called. They want their money back.

[bubble_contagion]

“This research was supported by the John Randolph Haynes and Dora Haynes Foundation”

John and Dora called. They want their money back.

[bubble_contagion]

“This research was supported by the John Randolph Haynes and Dora Haynes Foundation”

John and Dora called. They want their money back.

[bubble_contagion]

“This research was supported by the John Randolph Haynes and Dora Haynes Foundation”

John and Dora called. They want their money back.

[bubble_contagion]

“This research was supported by the John Randolph Haynes and Dora Haynes Foundation”

John and Dora called. They want their money back.

[alarmclock]

From Page 2 of the most recent version of the paper (2006):
Defining a Bubble
Charles Kindleberger (1987) defined a bubble this way:
a sharp rise in price of an asset or a range of assets in a continuous process, with the initial
rise generating expectations of further rises and attracting new buyers—generally
speculators interested in profits from trading rather than in its use or earning capacity. The
rise is then followed by a reversal of expectations and a sharp decline in price, often
resulting in severe financial crisis—in short, the bubble bursts.

Also, looks like his wife offers financial advice: http://www.smithfinancialplace.com/ I wonder if they recommended buying MBSs on option, 30-to-1 leverage. She has a book coming out, Houseonomics, May 2008: http://smithfinancialplace.com/?q=node/27 ??

[alarmclock]

From Page 2 of the most recent version of the paper (2006):
Defining a Bubble
Charles Kindleberger (1987) defined a bubble this way:
a sharp rise in price of an asset or a range of assets in a continuous process, with the initial
rise generating expectations of further rises and attracting new buyers—generally
speculators interested in profits from trading rather than in its use or earning capacity. The
rise is then followed by a reversal of expectations and a sharp decline in price, often
resulting in severe financial crisis—in short, the bubble bursts.

Also, looks like his wife offers financial advice: http://www.smithfinancialplace.com/ I wonder if they recommended buying MBSs on option, 30-to-1 leverage. She has a book coming out, Houseonomics, May 2008: http://smithfinancialplace.com/?q=node/27 ??

[alarmclock]

From Page 2 of the most recent version of the paper (2006):
Defining a Bubble
Charles Kindleberger (1987) defined a bubble this way:
a sharp rise in price of an asset or a range of assets in a continuous process, with the initial
rise generating expectations of further rises and attracting new buyers—generally
speculators interested in profits from trading rather than in its use or earning capacity. The
rise is then followed by a reversal of expectations and a sharp decline in price, often
resulting in severe financial crisis—in short, the bubble bursts.

Also, looks like his wife offers financial advice: http://www.smithfinancialplace.com/ I wonder if they recommended buying MBSs on option, 30-to-1 leverage. She has a book coming out, Houseonomics, May 2008: http://smithfinancialplace.com/?q=node/27 ??

[alarmclock]

From Page 2 of the most recent version of the paper (2006):
Defining a Bubble
Charles Kindleberger (1987) defined a bubble this way:
a sharp rise in price of an asset or a range of assets in a continuous process, with the initial
rise generating expectations of further rises and attracting new buyers—generally
speculators interested in profits from trading rather than in its use or earning capacity. The
rise is then followed by a reversal of expectations and a sharp decline in price, often
resulting in severe financial crisis—in short, the bubble bursts.

Also, looks like his wife offers financial advice: http://www.smithfinancialplace.com/ I wonder if they recommended buying MBSs on option, 30-to-1 leverage. She has a book coming out, Houseonomics, May 2008: http://smithfinancialplace.com/?q=node/27 ??

[alarmclock]

From Page 2 of the most recent version of the paper (2006):
Defining a Bubble
Charles Kindleberger (1987) defined a bubble this way:
a sharp rise in price of an asset or a range of assets in a continuous process, with the initial
rise generating expectations of further rises and attracting new buyers—generally
speculators interested in profits from trading rather than in its use or earning capacity. The
rise is then followed by a reversal of expectations and a sharp decline in price, often
resulting in severe financial crisis—in short, the bubble bursts.

Also, looks like his wife offers financial advice: http://www.smithfinancialplace.com/ I wonder if they recommended buying MBSs on option, 30-to-1 leverage. She has a book coming out, Houseonomics, May 2008: http://smithfinancialplace.com/?q=node/27 ??

[alarmclock]

Is Gary Smith bucking to take over for Lawrence Yun when he gets Lereah-ed?

“Once again the conservative sandwich-heavy portfolio pays off for the hungry investor!”

[audio src="http://www.gotfuturama.com/Multimedia/EpisodeSounds/3ACV21/12.mp3" /]

[alarmclock]

Is Gary Smith bucking to take over for Lawrence Yun when he gets Lereah-ed?

“Once again the conservative sandwich-heavy portfolio pays off for the hungry investor!”

[audio src="http://www.gotfuturama.com/Multimedia/EpisodeSounds/3ACV21/12.mp3" /]

[alarmclock]

Is Gary Smith bucking to take over for Lawrence Yun when he gets Lereah-ed?

“Once again the conservative sandwich-heavy portfolio pays off for the hungry investor!”

[audio src="http://www.gotfuturama.com/Multimedia/EpisodeSounds/3ACV21/12.mp3" /]

[alarmclock]

Is Gary Smith bucking to take over for Lawrence Yun when he gets Lereah-ed?

“Once again the conservative sandwich-heavy portfolio pays off for the hungry investor!”

[audio src="http://www.gotfuturama.com/Multimedia/EpisodeSounds/3ACV21/12.mp3" /]

[Author]

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