Friday, November 23, 2012
Bill McBride interview
The economics blogosphere was invented in early 2005 by a retired technology executive in Southern California named Bill McBride.
Thank God for that, because his blog, Calculated Risk, has been an invaluable and influential read for numerous reasons.
For one thing, it's always been right. In its early days, when we all started reading it, it was way ahead of the curve in terms of warning about the housing bubble, horrible bank lending practices, and generally the economic collapse. From his perch in Newport Beach, CA he could see first hand the people taking out loans worth 10x their income, filling their Inland Empire garages with Harleys and Boats that they obviously couldn't afford.
But unlike many other bloggers who made a name during the crisis, he didn't stick with the doom and gloom message. He started making arguments for a GDP rebound in 2009.
Then in February of this year, he made his most important call: He announced: The Housing Bottom Is Here. McBride had officially come full circle from his days warning of housing collapse. Today, 8 months later, the housing bottom is becoming general consensus.
In addition to being correct on the economy, Calculated Risk has imparted the internet with other good practices, such as dutifully charting out the data, and examining data in an impartial, apolitical, non-hysterical manner.