by Calculated Risk on 9/08/2006 12:05:00 AM

On Bloomberg Video: Krugman of Princeton Says Home Prices Have a `Long Way to Fall'.


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September 7 (Bloomberg) -- Paul Krugman, an economics professor at Princeton University, talks with Bloomberg's Rhonda Schaffler in New York about the outlook for the U.S. housing market, prospects for a recession and concern about the country's trade deficit. (Source: Bloomberg)

"I think we are looking at a housing cycle that we've never seen.
...
If history is any guide, housing prices have got a long way to fall and the housing industry is going to go through a long drought."