[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.
They talk about a housing recovery as if recovering means getting back to bubble prices.
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Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!
