1. Alan Reynolds, Senior Fellow, Cato Institute:
"No Housing Bubble Trouble,"Washington Times (January 8, 2005): "In short, we are asked to worry about something that has never happened for reasons still to be coherently explained. 'Housing bubble' worrywarts have long been hopelessly confused. It would have been financially foolhardy to listen to them in 2002. It still is."
"Recession Fairy Tales," Townhall (October 5, 2006): "When it comes to homes . . . many people have spent the last four years fretting that the 'housing bubble' might end. That is, they worried that overpriced homes might become more affordable. This is not quite as nonsensical as worrying the price of oil might fall too much, but it's close."
2. Kevin Hassett, Director of Economic Policy Studies, American Enterprise Institute:
New York Times (July 25, 2004): "Another bubble-skeptic is Kevin Hassett, director of economic policy studies at the American Enterprise Institute and co-author of the fabled 'Dow 36,000,' which was published in 1999 when the Dow Jones index was around 11,000. Mr. Hassett says there is an ideological component to the belief in bubbles. Liberals, who tend to believe that government must step in to protect people from market imperfections, will likely see more of them. Conservatives, who like their markets unfettered, will see less. [EoC: What a classic line. Liberals win again, conservatives lose again—same old, same old.]
"Mr. Hassett of the conservative American Enterprise Institute thinks housing prices will be pretty much O.K. He acknowledges there might be some bubble dynamics at play in some regions. But he argues that for the most part people are paying more for homes because their incomes are higher and interest rates are lower, reducing the cost to own a home.
"Mr. Hassett expects that rising interest rates would raise this cost and home prices would then decline proportionately. But he sees no reason to expect a catastrophic decline. 'I don't think a catastrophe is very likely,' he says.
3. James K. Glassman, Senior Fellow, American Enterprise Institute:
"Housing Bubble?," Capitalism Magzine (May 24, 2005): "[W]hile such signs of speculation are troubling, there is little solid evidence that a real estate bubble is puffing up.
"Even in places where prices are soaring, worries of a bubble could be overblown because higher prices appear grounded in good old fundamentals."
4. Jude Wanniski, former associate editor of the Wall Street Journal & adviser to President Reagan:
"There is No Housing Bubble!!," The Conservative Voice (August 13, 2005).
5. Jerry Bowyer, Author of The Bush Boom:
"Hate to Burst Your (Housing) Bubble: But there isn't one," National Review (July 5, 2006).
6. Nicolas P. Restinas, Director, Harvard Joint Center for Housing Studies:
"More Than a Bubble Keeps Housing Prices Sky-High," LA Times (May 20, 2004).
7. Jim Cramer, Host of CNBC's "Mad Money" & Co-Founder, TheStreet.com:
"House Beautiful," New York Magazine (December 8, 2003): "Housing bubble? What housing bubble? The signs are in place for a further run-up in real estate. Breathe easy, mortgage holders. There’s still no place like home."
8. Christopher Flanagan, Head of ABS Research, J.P. Morgan:
"Housing Outlook," J.P. Morgan Research, June 17, 2005 (no link): "[B]ased on what we know and see in terms of employment and interest rates, it is extremely difficult to see how five years from now we could be looking back and observing a historical 5-year growth rate of, say, less than 5%. That should be more than adequate to support the continued good credit performance of sub-prime mortgage pools.
"It is important to understand — we can contemplate home price growth rates declining, albeit modestly, but we do NOT envision home prices declining!"