[patientrenter]

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.)

[patientrenter]

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.)

[patientrenter]

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.)

[patientrenter]

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.)

[patientrenter]

I agree, President. I start deeply suspicious of any bailout, and fairly confident that a limited winding-down of insolvent institutions and bankrupt people would be a better solution in the long run. But I would have been very pleased to see a rational and open and balanced exploration of the alternatives. I could be convinced of a different conclusion than the one I hold now if it emerged after an open and fair and thorough competition of ideas.

[patientrenter]

I agree, President. I start deeply suspicious of any bailout, and fairly confident that a limited winding-down of insolvent institutions and bankrupt people would be a better solution in the long run. But I would have been very pleased to see a rational and open and balanced exploration of the alternatives. I could be convinced of a different conclusion than the one I hold now if it emerged after an open and fair and thorough competition of ideas.

[patientrenter]

I agree, President. I start deeply suspicious of any bailout, and fairly confident that a limited winding-down of insolvent institutions and bankrupt people would be a better solution in the long run. But I would have been very pleased to see a rational and open and balanced exploration of the alternatives. I could be convinced of a different conclusion than the one I hold now if it emerged after an open and fair and thorough competition of ideas.

[patientrenter]

I agree, President. I start deeply suspicious of any bailout, and fairly confident that a limited winding-down of insolvent institutions and bankrupt people would be a better solution in the long run. But I would have been very pleased to see a rational and open and balanced exploration of the alternatives. I could be convinced of a different conclusion than the one I hold now if it emerged after an open and fair and thorough competition of ideas.

[patientrenter]

I agree, President. I start deeply suspicious of any bailout, and fairly confident that a limited winding-down of insolvent institutions and bankrupt people would be a better solution in the long run. But I would have been very pleased to see a rational and open and balanced exploration of the alternatives. I could be convinced of a different conclusion than the one I hold now if it emerged after an open and fair and thorough competition of ideas.

[patientrenter]

Republican supporters are impressed by the Republican arguments for spending $700bn; Democrat supporters are impressed by the Democrat arguments for spending $700bn. Most folks continue to vote for the people who want to spend more of their money because the professionals with their hands in our pockets present themselves attractively.

snark: Is there a country out there that enforces a minimum street-savviness standard on the people who want to live there?

[patientrenter]

Republican supporters are impressed by the Republican arguments for spending $700bn; Democrat supporters are impressed by the Democrat arguments for spending $700bn. Most folks continue to vote for the people who want to spend more of their money because the professionals with their hands in our pockets present themselves attractively.

snark: Is there a country out there that enforces a minimum street-savviness standard on the people who want to live there?

[patientrenter]

Republican supporters are impressed by the Republican arguments for spending $700bn; Democrat supporters are impressed by the Democrat arguments for spending $700bn. Most folks continue to vote for the people who want to spend more of their money because the professionals with their hands in our pockets present themselves attractively.

snark: Is there a country out there that enforces a minimum street-savviness standard on the people who want to live there?

[patientrenter]

Republican supporters are impressed by the Republican arguments for spending $700bn; Democrat supporters are impressed by the Democrat arguments for spending $700bn. Most folks continue to vote for the people who want to spend more of their money because the professionals with their hands in our pockets present themselves attractively.

snark: Is there a country out there that enforces a minimum street-savviness standard on the people who want to live there?

[patientrenter]

Republican supporters are impressed by the Republican arguments for spending $700bn; Democrat supporters are impressed by the Democrat arguments for spending $700bn. Most folks continue to vote for the people who want to spend more of their money because the professionals with their hands in our pockets present themselves attractively.

snark: Is there a country out there that enforces a minimum street-savviness standard on the people who want to live there?

[patientrenter]

There are only a few key people really driving the bailout bus. They include Barney Frank, Chris Dodd, Chuck Schumer, Paulson, and Bernanke. Each of them has made very clear that they will not be satisfied with the bailouts until they make home prices stop falling.

Will the particular programs put in place so far achieve that goal? I don’t know and it’s irrelevant. What matters is whether the govt has the ability, using all its powers now and in the future, to prevent a quick return to historical norms for house prices.

I know which way I’d bet on that.

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