Larry Summers at Sauder – “The housing price graph here is every bit as bad as it was in the US. It looks like the same graph shifted four years over.”

“Larry Summers (former President of Harvard and former U.S. Treasury Secretary) was in town this week. He gave a brief talk to the UBC Sauder community (on Monday 19 Nov 2012)– it was largely directed towards the many undergrads in attendance about significant global economic trends. He did make an aside though about the Canadian housing market.
He noted that the growth in the U.S. economy since 2008 only accounted for population growth and productivity growth. He then remarked that Canada was doing better. Initially he said that this was because Canadian financial institutions fared better than their US counterparts due to the Canadian system of regulation. But he then immediately noted (and this is a rough quote): “I hasten to add yet — the housing price graph here is every bit as bad as it was in the US — it looks like the same graph shifted four years over.”
– this submitted by ‘Sauder Prof’, a Sauder professor, via e-mail to vreaa 23 Nov 2012. Sauder Prof adds “I have very bearish views regarding the Vancouver housing market. … I thought I would let people know that the range of views that get discussed and taught at Sauder is broader than someone outside the institution might think.”

Many thanks to ‘Sauder Prof’, both for the Summers’ quote and for the information about Sauder. We know there are some at Sauder that see what we see regarding the RE market. It’s a pity that the RE experts there didn’t see fit to warn the populace of the risks involved. Too late for that now, though. – vreaa

9 responses to “Larry Summers at Sauder – “The housing price graph here is every bit as bad as it was in the US. It looks like the same graph shifted four years over.”

  1. pfff! More “so-called experts”. I thought University dropouts weren’t allowed to become professors…

  2. “Former president Summers”

    That’s exactly why we got some truth out of him. Expect leaders to lie if it suits their interests, that’s the moral of the story.

  3. Summers. Oh no another quote experts must refute! No wait, the media never ask experts to directly refute quotes like this.

  4. [NoteToEd: Well then… whatever else one might say about Larry, you’ve got to admit, if he can spot an a**hole in a crowd he probably knows a Bubble when he sees one, too.]

  5. So why has the local media never interviewed the bearish “Sauder Prof”, instead always calling upon his bullish colleague, Tsur Somerville? Where’s the balance? Profs, as individuals, are entitled to their opinions. Media outlets are supposed to be objective.

    • My understanding is that the bearish prof is not in the RE ‘division’/’department’ (correct term?) at Sauder, thus isn’t called upon when media are looking for RE experts.

  6. Ironic that Larry Summers is making such comments. This bastard and his lobbying for de-regulatory policies for the financial sector in the USA was one of the main catalysts (along with former Chairman of the Federal Reserve Alan Greenspan) that lead to their housing bubble and the economic collapse.

    I agree with micker07 that now he is a former treasury secretary he no longer has to pretend everything is “alright”. Simply a disgusting human being.

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