Grand Game, Part II: We Need Another Bubble!
The problem is that I think this level of economic thinking is quite representative of the administration's brain trust.
Eugene Robinson, a pretty sensible guy (at least by WAPO standards) asserts that the only way out of our mess is for housing prices to go back to 2007 levels.
E-Rob! That was a BUBBLE. Those prices had no relation to scarcity values, production costs, or demand. And here's the thing: production values and demand are the things that determine price (except in a bubble, of course).
So, anyway, GG time, folks. Let's do this in comments.
I'll go first: For 30 years, the limo-left has been whining about affordable housing. But now that housing IS affordable, their main concern is to jack housing prices (of THEIR houses!) back up again. Have you noticed that all the places where housing prices fell MOST (NY, Boston, Northern Cal) are the places where lefties cluster like ticks? When it comes to blind self-interest for erstwhile do-gooders, all that compassion goes out the window. It's time get out the air pump, Jasper, and reinflate that bubble right away! The poor can just go screw themselves, because the left needs to keep stizacking that pizaper!
Labels: The Grand Game