Steve Keen has admitted he was wrong about house prices and...

Steve Keen has admitted he was wrong about house prices and interest rates, SURPRISE, SURPRISE, but not for astute property investors who knew he was barking mad.

Good story in today's eureks report which states:

Stevie, who after years of gloom and doom had been temporarily vindicated by the GFC, is a bright (and nice) guy who can make contributions to the public debate with alternative points of view (particularly on leverage). But he is the first to admit that he was perhaps a bit out of his depth when it came to house prices.

Rory thought he would offer up the community a “public good” of sorts by making an example of Stevie and minimising the likelihood of mass hysteria next time a relatively unknown commentator came out with an Armageddon-like call that had the potential to needlessly spook millions of households (ie, by encouraging the media to apply a sanity test to these statements).

Of course, the rest is history. Stevie, who has publicly indicated that he now regrets making the bet – “the only reason I’m sorry for myself is for letting this exchange (Macquarie Group interest rate strategist Rory Robertson sprang the bet on me in front of an audience at Parliament House) distract me from my main focus on the macroeconomy” – is about to shed some serious kilos in a long hike from Canberra to Mt. Kosciusko.

Full story can be read at:

http://www.businessspectator.com.au/bs.nsf/article/rory-robertson-hawkish-pd20090901-vfv9q?opendocument&src=blb&is=property&blog=concrete%20detail