Rep. Brad Miller (NC-13) - Keep Doing That Chicken with H.R. 5409...

polifrog

Consider how much money has been thrown at our economy with little measurable positive impact. Then consider the measurable negative impact on our debt.

Keynesians must be in disarray at this point.

It is a shame that Brad Miller is so wedded to an Economic school of thought that refuses to take into account the negative effects of debt. Priming the economic pump doesn't work when the money multiplier has been crushed by the drag of systemic debt.


Miller's Keynesian marching orders, though, have lead him to introduce a new bill, HR 5409.

H.R. 5409, the Residential Construction Lending Act, would create a new residential construction loan guarantee program within the Department of Treasury to provide loans to builders with viable construction projects. Designed to unfreeze credit for small home building firms, the measure would expand the flow of credit to residential builders on competitive terms.

Unbelievable! It was policies like H.R. 5409 that created the sub-prime mess and housing bubble that pounds our economic fortunes today. Even government bubbles pop; that's what they do and when they pop we all feel the pain. Attempting to reflate the bubble as Brad Miller suggests is absolute folly as it costs society more than any gains received and only lengthens the suffering for us all.


Throwing money at a problem without regard to long term impacts simply because it feels good is classic Brad Miller grade school economics.

Keep doing that Keynesian chicken Brad. Fail.






out

Brad Miller (D-NC) -- Political Preening With HR 5409...

polifrog


Brad Miller is pushing a bill (HR 5409) to guarantee construction loans when the market is already saturated with product.

It you want to buy a home, it is a great time to do so considering the low interest rates, the glut of inventory and battered home prices. All this is true without Brad Miller's help. Few are buying, though. The market is saying "no!" to new construction, but Brad Miller, ignoring the economic weather, sees a chance to make it appear he is helping America by making construction loans cheaper with an end result of pushing more product on a recalcitrant market.

It is your money folks; it is your debt; it is the debt of your progeny that Brad Miller wants to spend on his appearance in HR 5409.

According to Brad Miller,

We can’t tell 16% of the [Gross Domestic Product] to just hang around and wait for a while, says Miller, referring to the housing industry and its economic output.

Unfortunately, more waiting is just what we will have to do with policies like Brad Miller's.

The market needs to correct for overbuilding and Brad Miller's HR 5409 will only serve to lengthen the time it takes to correct.

Polifrog is a home builder and is tired of waiting for the market to return. Please, Brad Miller, stop tying to reinflate a construction bubble, stop your political preening and let us take our lumps so we can move forward.

---

Of course, government should not take the money in the first place...

Why force the inefficiencies of Taxes on the American economy then run the money through the inefficiencies of governance only to give it back again.

The amateurishness of it all leaves one's head spinning.

Brad Miller, a grade school economist.




out

Brad Miller (NC-13) - Keep Doing That Chicken with H.R. 5409...

polifrog

  Consider how much money has been thrown at our economy with little measurable positive impact.  Then consider the measurable negative impact on our debt.

Keynesians must be in disarray at this point.

It is a shame that Brad Miller is so wedded to an Economic school of thought that refuses to take into account the negative effects of debt.  Priming the economic pump doesn't work when the money multiplier has been crushed by the drag of systemic debt.


Miller's Keynesian marching orders, though, have lead him to introduce a new bill, HR 5409.

H.R. 5409, the Residential Construction Lending Act, would create a new residential construction loan guarantee program within the Department of Treasury to provide loans to builders with viable construction projects. Designed to unfreeze credit for small home building firms, the measure would expand the flow of credit to residential builders on competitive terms.

Unbelievable!  It was policies like H.R. 5409 that created the sub-prime mess and housing bubble that pounds our economic fortunes today.  Even government bubbles pop; that's what they do and when they pop we all feel the pain.  Attempting to reflate the bubble as Brad Miller suggests is absolute folly as it costs society more than any gains received and only lengthens the suffering for us all.


Throwing money at a problem without regard to  long term impacts simply because it feels good is classic Brad Miller grade school economics. 

Keep doing that Keynesian chicken Brad.  Fail.






out