US Housing Prices will fall by 47% by 2007

I was just reading an interesting book and realised that in 1989, Professor Mankiw and David Weil published an article entitled "The Baby Boom, the Baby Bust, and the Housing Market". In it, they concluded the title above, and stated that prices may reach lower levels than those experienced at any time in the past forty years (US).

Fast forward to now 2007... Look at the US Housing market now, and all the problems it faces.

Incidentally, Professor Mankiw is the chairman of President Bush's Council of Economic Advisors (as of 2005, publish date of the book). Why we never have such talent in Singapore? This is the kind of talent we need.