We need to raise home values

[underdose]

[quote=sd_bear]I think all the Obama bashing is hysterical. I don’t agree with the stimulus or the bailouts one bit, but I’m not fooling myself into thinking McCain wouldn’t do the exact same thing. It was Bush who pushed out the first 700 billion TARP and that 150 billion stimulus last year. As far as the economy goes both parties are completely in the dark and are taking the wrong actions. That’s why I base my vote generally on social issues.
[/quote]

Agreed. I voted for Obama for social issues too. However that, and Bush/McCain’s guilt, do not absolve Obama for completely screwing the pooch. So far, to be fair, he has su-u-u-ucked. Less bad than the alternative, but still bad. Obama bashing isn’t hysterical at all. It’s very realistic. And it does not constitute a vote of confidence for the mainstream competition. It’s a vote of no-confidence for the lesser of two evils. That’s the very sad state we find ourselves in.

[Anonymous]

[quote=patientrenter]It is easy to forget that government action can be very effective in distorting prices. For example, if the government were to decide tomorrow to give buyers with no downpayment enough money to buy any home at 120% of its appraised value, then I guarantee you that home prices would move up quickly. Yes, inflation would eventually shoot up, but that just transfers wealth from net savers to net borrowers. That makes it a form of confiscation, but it’s a form very much in favor in the US.
[/quote]
I agree with you that the government has power to severely distort the market. But the side-effects and unintended consequences of their action would create even larger problems. In every scenario, you have to ask yourself how the masses would respond (including global scope). In your scenario, what would such an action do to the government’s balance sheet? (i.e. could the government borrow more money?) How would creditor nations like China respond? How would Americans who acted responsibly respond?
So given these considerations, I don’t see how it’s possible for the government to play these games and succeed.

[Anonymous]

[quote=patientrenter]It is easy to forget that government action can be very effective in distorting prices. For example, if the government were to decide tomorrow to give buyers with no downpayment enough money to buy any home at 120% of its appraised value, then I guarantee you that home prices would move up quickly. Yes, inflation would eventually shoot up, but that just transfers wealth from net savers to net borrowers. That makes it a form of confiscation, but it’s a form very much in favor in the US.
[/quote]
I agree with you that the government has power to severely distort the market. But the side-effects and unintended consequences of their action would create even larger problems. In every scenario, you have to ask yourself how the masses would respond (including global scope). In your scenario, what would such an action do to the government’s balance sheet? (i.e. could the government borrow more money?) How would creditor nations like China respond? How would Americans who acted responsibly respond?
So given these considerations, I don’t see how it’s possible for the government to play these games and succeed.

[Anonymous]

[quote=patientrenter]It is easy to forget that government action can be very effective in distorting prices. For example, if the government were to decide tomorrow to give buyers with no downpayment enough money to buy any home at 120% of its appraised value, then I guarantee you that home prices would move up quickly. Yes, inflation would eventually shoot up, but that just transfers wealth from net savers to net borrowers. That makes it a form of confiscation, but it’s a form very much in favor in the US.
[/quote]
I agree with you that the government has power to severely distort the market. But the side-effects and unintended consequences of their action would create even larger problems. In every scenario, you have to ask yourself how the masses would respond (including global scope). In your scenario, what would such an action do to the government’s balance sheet? (i.e. could the government borrow more money?) How would creditor nations like China respond? How would Americans who acted responsibly respond?
So given these considerations, I don’t see how it’s possible for the government to play these games and succeed.

[Anonymous]

[quote=patientrenter]It is easy to forget that government action can be very effective in distorting prices. For example, if the government were to decide tomorrow to give buyers with no downpayment enough money to buy any home at 120% of its appraised value, then I guarantee you that home prices would move up quickly. Yes, inflation would eventually shoot up, but that just transfers wealth from net savers to net borrowers. That makes it a form of confiscation, but it’s a form very much in favor in the US.
[/quote]
I agree with you that the government has power to severely distort the market. But the side-effects and unintended consequences of their action would create even larger problems. In every scenario, you have to ask yourself how the masses would respond (including global scope). In your scenario, what would such an action do to the government’s balance sheet? (i.e. could the government borrow more money?) How would creditor nations like China respond? How would Americans who acted responsibly respond?
So given these considerations, I don’t see how it’s possible for the government to play these games and succeed.

[Anonymous]

[quote=patientrenter]It is easy to forget that government action can be very effective in distorting prices. For example, if the government were to decide tomorrow to give buyers with no downpayment enough money to buy any home at 120% of its appraised value, then I guarantee you that home prices would move up quickly. Yes, inflation would eventually shoot up, but that just transfers wealth from net savers to net borrowers. That makes it a form of confiscation, but it’s a form very much in favor in the US.
[/quote]
I agree with you that the government has power to severely distort the market. But the side-effects and unintended consequences of their action would create even larger problems. In every scenario, you have to ask yourself how the masses would respond (including global scope). In your scenario, what would such an action do to the government’s balance sheet? (i.e. could the government borrow more money?) How would creditor nations like China respond? How would Americans who acted responsibly respond?
So given these considerations, I don’t see how it’s possible for the government to play these games and succeed.

[Author]

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