For some time now I have been referring to the "housing bubble" in posts deriding the state of our economy and the solutions often proposed by politicians like Brad Miller. The reality, though, is that government created Keynesian bubble as described at the top of every page on this blog. Bastardized Keynesian Theory. Others, though, hit similar points frequently with far more flare..
Who Caused the Housing Bubble by Gregory Sullivan:
You've got to get it out of your head that there was a "housing bubble." There was a government bubble, a banking bubble, a 401k bubble, a credit card bubble... hell, let's just say we were doing the backstroke in a bathtub full of bubbles and wash our hands of it. You paid good money for worthless things. You got mugged, and you're blaming your split-level two bedroom wallet.
It's widely reported that people used the equity in their home to do all sorts of things, and since the dollar value of houses eventually slumped, it showed the rottenness of the house. No it didn't. It demonstrated the worthlessness of the things the money was lavished on.
You borrowed against your house to send your kid to college. Your kid now lives in your basement eating Cheetos and downloading porn all day instead of out in the workforce, sitting at a desk eating Cheetos and looking at porn on company time as God and Nature intended. But that's a college education bubble. A college loan bubble. You borrowed against a useful and valuable thing, your house, and your children learned Ida Tarbell's bra size, but nothing useful enough to make them employable in a recession.
The rest can be found here.
out
No comments:
Post a Comment