DallasDirt » Financial crisis of 2009 http://dallasdirt.dmagazine.com DallasDirt is a real estate blog with a focus on housing trends, realtor news, and photos of local fabulous homes from the editors of D Magazine Mon, 25 Oct 2010 20:11:09 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Hank Paulson: the Economic Models Were Worthless http://dallasdirt.dmagazine.com/2010/03/01/hank-paulson-the-economic-models-were-worthless/ http://dallasdirt.dmagazine.com/2010/03/01/hank-paulson-the-economic-models-were-worthless/#comments Mon, 01 Mar 2010 14:24:50 +0000 Candy Evans http://dallasdirt.dmagazine.com/?p=8129 I’m reading an interview with Hank Paulson in the March/April Dartmouth Alumni Magazine by ABC’s Jake Tapper ’91 you just have to read. ( I’m trying to get a link.) But you have to read this quote after Tapper asked Paulson, ” Was there any class or professor at Dartmouth that you’ve carried with you and served as a source of comfort or inspiration during the (worst financial) crisis?” (Tapper was hoping maybe Paulson would name an inspirational economics prof.)

Paulson: “Basically I found economics pretty much worthless during this thing. Now that’s an overstatement — Bernanke’s skill as an economist and practical skill and knowledge of economic history was incredibly valuable. But the economic models were worthless. The economist’s ability to predict what was going to happen when we were in the middle of a crisis was just…”

Tapper: “Very few of them saw it coming.

Paulson: Yeah.

It reminded me of last week’s crazy real estate headlines:

Home sales plunge 7.2% lowest since  June 2009

Dallas home prices up 3% in December.

Housing Continues Weak

Dallas/Fort Worth Foreclosures at Lowest Levels in Three Years

Northeast Home Sales Up 7% From Year Ago Levels, Prices Up 9%

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