tag:blogger.com,1999:blog-13164186.post9130209785049286000..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: Those in government still don't get it!Davidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-13164186.post-66864701072132929612008-11-17T11:14:00.000-05:002008-11-17T11:14:00.000-05:00You're both wrong.Interest rates are too low, Anon...You're both wrong.<BR/><BR/>Interest rates are too low, Anonymous and housing prices are to high. The first does not provide enough return to a lender to justify lending at thest prices, the second is inconsistent with the amount of houses in supply.<BR/><BR/>We don't need a quick fix...we need an adjustment. Prices must fall...rates must rise...until equilibrium is reached. During that process support is provided by government...not to business...but to the general public to ease their pain and difficulties throught the adjustment period.<BR/><BR/>THAT...is how the free market works.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-52156624931286689012008-11-16T13:51:00.000-05:002008-11-16T13:51:00.000-05:00Lance, hypothetically speaking even if you were ri...Lance, hypothetically speaking even if you were right (you're not) that ever increasing construction is necessary, it does not follow that prices need to rise. If the asset is overvalued (it is), declines from that overvaluation could very well dominate any upward pressure from increasing demand. Your underlying premise is faulty in many ways as well.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-37915677888068113102008-11-16T09:57:00.000-05:002008-11-16T09:57:00.000-05:00What Tim Duy doesn't get is that while housing may...What Tim Duy doesn't get is that while housing may not be a driver for the economy, it (or rather the lack thereof) can be its biggest constraint. For the economy to continue to grow, it needs a never ending, always increasing population to sustain it both as factors of production and as consumers ... And that population needs places to work, sleep, eat, entertain, be entertained. In brief, it needs new construction and always more construction. Paulson is correct, Tim Duy isn't.Lancehttps://www.blogger.com/profile/12216089306021385355noreply@blogger.comtag:blogger.com,1999:blog-13164186.post-56995630191963136222008-11-15T09:53:00.000-05:002008-11-15T09:53:00.000-05:00Lower the 30 year mortgage rate enought that the P...Lower the 30 year mortgage rate enought that the PITI payment is just below the equivalent monthly rent.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-13164186.post-35929533362060101822008-11-14T17:23:00.000-05:002008-11-14T17:23:00.000-05:00"Policy would be best focused on supporting the in..."Policy would be best focused on supporting the inevitable transition away from debt-supported consumer dependent growth dynamic."<BR/><BR/>how about no policy whatsoever, not policy that supports something that's inevitable anyway. if we agree to a transitional policy it'll be the Davis-Bacon Act v2.0.Anonymousnoreply@blogger.com