Subprime mortgage crisis
Xie is one of the few economists who accurately predicted economic bubbles including the 1997 Asian Financial Crisis, dot-com bubble (1999) and Subprime mortgage crisis (2008). Xie considers himself as one who has had a reasonably good record at calling bubbles in the past. "I wrote my doctoral thesis arguing that Japan was a bubble in late 1980s, a long report at the World Bank in the early 1990s arguing that Southeast Asia was a bubble, research notes at Morgan Stanley in 1999 calling dotcom boom a bubble, and numerous research notes from 2003 onwards arguing that the U.S. property market was a bubble. On the other hand I have never called something a bubble that turned out not to be a bubble."