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magical thyme

(14,881 posts)
23. if we supported the job market, and by aftereffect, worker's wages
Wed May 30, 2012, 08:22 PM
May 2012

then more people would qualify for mortgages and would have the confidence to buy.

Allowing prices to finally collapse at this late date, after starving underemployed homeowners for 5 years, would precipitate a new disaster.

Had they allowed it to run its natural course in '08, many of us who prepared in advance would have been able to ride out the storm.

By propping up the banks for 4 years, dragging this out ad infinitum, at least some of us who tried to prepare for the coming storm are now on the brink. If they finally let it collapse now, people like me will go down for the final time.

Had they given a true stimulus, of the size recommended and in the best form (hint: not tax cuts) along with bailing out the banks (and jailing the banksters), then we would have inflation and be able to monetize the debt, but we would also have higher employment rates and the workers would be doing better.

Can't have that, though.

We're still scraping along the bottom of this recession. MadHound May 2012 #1
The 1% felt the recession? WI_DEM May 2012 #2
Mortgage rates are too high cthulu2016 May 2012 #3
People aren't buying them for a number of reasons MadHound May 2012 #4
Out of curiosity... cthulu2016 May 2012 #5
Common sense. MadHound May 2012 #7
The purpose of the low rates is to create inflation cthulu2016 May 2012 #9
You're preaching neoclassical nonsense, imo. girl gone mad May 2012 #19
MadHound was citing the neoclassical nonsense. I was translating it. cthulu2016 May 2012 #21
PS cthulu2016 May 2012 #22
An alternative prognosis is that resource constraints put a ceiling on growth bhikkhu May 2012 #25
I mean every word of what I wrote. girl gone mad May 2012 #26
dear MadHound, you are "on the left" - that explains the poster's agenda completely... msongs May 2012 #10
Good lord... do you have any thought process at all? cthulu2016 May 2012 #20
If the homeowners would just band together and sell off a bunch of Credit Default Swaps, jtuck004 May 2012 #6
People aren't buying because they don't have jobs... Mayflower1 May 2012 #11
Propping up prices (for banks that hold so many homes) is slowing what recovery there is. n/t Egalitarian Thug May 2012 #8
Sadly Nuclear Unicorn May 2012 #12
Which is exactly why this path of non-solutions was exactly the wrong thing to do Egalitarian Thug May 2012 #15
Can you keep a secret? Nuclear Unicorn May 2012 #16
Well I'm a bad Democrat, There are certain principles that I will always stand by even, and Egalitarian Thug May 2012 #24
Interesting... because in May the realtors I know can't take a day off... progressivebydesign May 2012 #13
Isolated markets? Hawkowl May 2012 #17
As we all know anecdote is much more important than data AngryAmish May 2012 #18
We bailed out the banks that hold title to many of these homes. This has kept home prices Romulox May 2012 #14
if we supported the job market, and by aftereffect, worker's wages magical thyme May 2012 #23
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