President, I am not sure we disagree. This bailout alone will not prevent home prices from continuing to decline significantly, in my opinion. My point is that this isn’t all that important. What is important is that getting home prices to stop falling is a top priority for the most influential people in power, and they are determined to do whatever is within their combined power to achieve that. This bailout is just a first step. When the bailout alone doesn’t work, they will take progressively stronger actions.
So the real question is, I think, do the power brokers from both parties in Congress and the White House, and from the media and amongst intellectuals have the combined power to get home prices to stop falling? That’s a lot of power.
(Oh, and of course persistently high inflation would be the only practical way to achieve this.)
