I am naturally loathed to draw any further attention to the predictions of my old friend, Associate Professor Steve Keen, of the University of Western Sydney. As I have demonstrated many times before, his forecasting track record leaves a lot to be desired. Yet since he was once upon a time arguably the most media saturated economist in the southern hemisphere, I should, for the record, highlight yet another sensationalist call. In his latest blog post, Steve concludes with the following statement:
"I expect these two processes to lead to an accelerating rate of decline in [Australian] house prices now, as they did in the USA when “Flip That House” ceased being a winning trade."
Let's see what the data says. Somehow I very much doubt we will be subject to an "accelerating decline in house prices." Perhaps my other good mate, Rory Robertson, will challenge Steve again? In the meantime, here is a copy of my slide on Steve's forecasting record.
