bobomite

Let's Have Inflation

Inflating home prices back into unrealistic ranges is a terrible idea. Consumers straddled with mortgages that are far more expensive than their incomes can realistically support will do nothing to fix the situation. It might save some banks in the short term, and it does appear that the entire resources of the country are now geared towards propping up banks, but this does not make it a good idea.

It's funny, Enron blew up and people went to jail for hiding bad assets and debts off book. Here we are a few years later with hundreds, maybe thousands of Enrons doing exactly the same thing.

The only effort being made is to pump cash into them. Now the talk is of making official government banks to take all the bad assets, LEGALIZING this criminal behavior. Hmmm, what lesson are these CEOs learning from all this? Let me take a guess...

And crazy ideas like inflating the whole economy to lock in historically unsustainable house prices. Where to even begin with this crap? That would be like the Dutch government inflating the rest of their economy to catch the falling prices of tulip bulbs in 1636. Makes no sense.