[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

[quote=Ren]That’s when you’ve got money to burn. I’ve settled on a much more achievable goal – an ocean view condo on a Greek island for use as a vacation rental/second home. They are surprisingly affordable.

Having your own island would be cool, but I actually like when other people are around. Feels more… civilized.[/quote]

How much, Ren?

[patientrenter]

[quote=Ren]That’s when you’ve got money to burn. I’ve settled on a much more achievable goal – an ocean view condo on a Greek island for use as a vacation rental/second home. They are surprisingly affordable.

Having your own island would be cool, but I actually like when other people are around. Feels more… civilized.[/quote]

How much, Ren?

[patientrenter]

[quote=Ren]That’s when you’ve got money to burn. I’ve settled on a much more achievable goal – an ocean view condo on a Greek island for use as a vacation rental/second home. They are surprisingly affordable.

Having your own island would be cool, but I actually like when other people are around. Feels more… civilized.[/quote]

How much, Ren?

[patientrenter]

[quote=Ren]That’s when you’ve got money to burn. I’ve settled on a much more achievable goal – an ocean view condo on a Greek island for use as a vacation rental/second home. They are surprisingly affordable.

Having your own island would be cool, but I actually like when other people are around. Feels more… civilized.[/quote]

How much, Ren?

[patientrenter]

[quote=Ren]That’s when you’ve got money to burn. I’ve settled on a much more achievable goal – an ocean view condo on a Greek island for use as a vacation rental/second home. They are surprisingly affordable.

Having your own island would be cool, but I actually like when other people are around. Feels more… civilized.[/quote]

How much, Ren?

[patientrenter]

[quote=patb][quote=JACKQLYN]I
What will happen when this 8k tax credit ends, unemployment staggers, and California’s well runs dry?

Just wait.[/quote]

Armageddon.

The California Budget is 100 hours away from bouncing checks.
Ultimately that means serious cuts in services across the board.

Middle Class people and the upper working class will pull out,
especially if the jobs are bad or they are way underwater on ahouse.

California will start trending towards Brazil.

[/quote]

California will undertake some very high profile cuts that are small compared to the deficit, and that will be the cover for a bailout by the feds.

[patientrenter]

[quote=patb][quote=JACKQLYN]I
What will happen when this 8k tax credit ends, unemployment staggers, and California’s well runs dry?

Just wait.[/quote]

Armageddon.

The California Budget is 100 hours away from bouncing checks.
Ultimately that means serious cuts in services across the board.

Middle Class people and the upper working class will pull out,
especially if the jobs are bad or they are way underwater on ahouse.

California will start trending towards Brazil.

[/quote]

California will undertake some very high profile cuts that are small compared to the deficit, and that will be the cover for a bailout by the feds.

[patientrenter]

[quote=patb][quote=JACKQLYN]I
What will happen when this 8k tax credit ends, unemployment staggers, and California’s well runs dry?

Just wait.[/quote]

Armageddon.

The California Budget is 100 hours away from bouncing checks.
Ultimately that means serious cuts in services across the board.

Middle Class people and the upper working class will pull out,
especially if the jobs are bad or they are way underwater on ahouse.

California will start trending towards Brazil.

[/quote]

California will undertake some very high profile cuts that are small compared to the deficit, and that will be the cover for a bailout by the feds.

[patientrenter]

[quote=patb][quote=JACKQLYN]I
What will happen when this 8k tax credit ends, unemployment staggers, and California’s well runs dry?

Just wait.[/quote]

Armageddon.

The California Budget is 100 hours away from bouncing checks.
Ultimately that means serious cuts in services across the board.

Middle Class people and the upper working class will pull out,
especially if the jobs are bad or they are way underwater on ahouse.

California will start trending towards Brazil.

[/quote]

California will undertake some very high profile cuts that are small compared to the deficit, and that will be the cover for a bailout by the feds.

[patientrenter]

[quote=patb][quote=JACKQLYN]I
What will happen when this 8k tax credit ends, unemployment staggers, and California’s well runs dry?

Just wait.[/quote]

Armageddon.

The California Budget is 100 hours away from bouncing checks.
Ultimately that means serious cuts in services across the board.

Middle Class people and the upper working class will pull out,
especially if the jobs are bad or they are way underwater on ahouse.

California will start trending towards Brazil.

[/quote]

California will undertake some very high profile cuts that are small compared to the deficit, and that will be the cover for a bailout by the feds.

[patientrenter]

[quote=jpinpb]…. I don’t know how long they can kick the can before their leg gets tired, but they’ll do it until it gets dislocated.
[/quote]

LoL!

And Diego Mamani, Alan Blinder is not naive. He knows that the policies he’s pushing would lead to high inflation – that’s why he’s pushing them. Inflation is the giant “get out of jail free” card for those who were irresponsible. But he also knows it’ll just raise too much political opposition to actually say that inflation is the purpose. Better to deny it’s a likely outcome, and then when it happens just say that it was an unforeseen result of a necessary action.

[Author]

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