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Double the debt ceiling?
Friday, November 13, 2009
Real estate attorney Stephen Meister thinks that, due to ongoing losses at Fannie Mae, Freddie Mac, and the FHA, the U.S. government ought to double the debt ceiling.
It's hard to argue with the characterization of the post-World War II government promotion of owning your own home as being "radicalized" over the last twenty years or so.
5 comments:
Tim,
If you haven't seen this already...
http://www.youtube.com/watch?v=P-Ef79KcH0Y&feature=player_embedded
Sam in MD
Yeah, pretty amazing. I'm going to put that up later today.
Sam,
That appears to be massive overcapacity.
Of course, there's nothing that price won't fix.
Sounds more like deflation than inflation, right? Nobody can be sure until it happens.
Chuck
Double the national debt, just to keep prices above marginal utility? Madness.
«post-World War II government promotion of owning your own home as being "radicalized" over the last twenty years or so.»
It has become radicalized since some English think-tank pointed out to Mrs. Thatcher that landlords, even landlords with very little equity, reliably vote for conservative parties. Same as promoting stock ownership, to the same effect.
Also promoting mass asset ownership (real estate or stock accounts) has the advantage that drives up the prices of those assets, both because of increased demand for assets, and of increased demand for politics that drive up asset prices, and this has allowed for 20 years old money to cash in their USA assets it ever rising prices, as assets in other countries (e.g. China) become more attractive than USA assets.
One of the most glaring examples of old money cashing in their assets at the expense of dumb money has been the transformation of all investment banks from partnerships to quoted companies, with the sale of those partnership stakes to rubes at ever inflating prices until recently.
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