Dallas Fed Discovers Mean-Reversion, Fails To Mention Bubble

The PhD-waving geniuses at the Fed have glanced up from their mathematical models and analytical brilliance and (re)discovered an age-old economic phenomenon: Reversion to the mean. Prices for assets tend to return to "normal" patterns after bubbles and busts. Housing prices in "real" (inflation adjusted) dollars since 1890: in 2004, Greenspan said The Fed couldn't [...]