[quote=jpinpb]…No matter how many pints of whiskey Bernanke sets in front of someone passed out on the floor, liquor sales will not rise.[/quote]
Well, that would be a good analogy for true debt (the type you have to pay back). But the govt has learned to use more and more debt that doesn’t have to be paid back. Non-recourse loans with little or no money down allow a borrower to capture the upside, while walking away from the downside. This kind of loan is the FHA’s specialty. With this kind of loan, the borrower is best off buying the biggest home they will qualify for. Using lots of loans like this, it is possible to reflate, and eventually inflate.
