Interventionists Launch New "Economic Communications War Room"
The Roosevelt Institute has just sent out an email that states:
A Call to Arms for Progressive Economists
We’re excited to announce that the Roosevelt Institute will be home to a brand new project: the Economic War Room, the first-ever economic communications initiative that will accelerate and intensify thepromotion of progressive economic ideas and policies into the public debate at a moment when the whole country is looking for solutions. Stay tuned for more about this exciting new initiative!
RI goes on to report on a plan to manipulate the mortgage market:
Fellow Mike Konczal just released a new research paper, in partnership with Americans for Financial Reform and Campaign for a Fair Settlement, making the case for mortgage debt reductions in order to boost the economic recovery. Paul Krugman and others have been praising Mike’s analyses. Read the paper here.
Konczal's conclusion is:
The market is not likely to sort this [mortgage problem] out by itself.
He makes this conclusion without even discussing how the mortgage market got in its present condition by multiple interventions in the mortgage market in the first place (starting with the Federal Reserve) and continuing interventions that are not allowing the market to clear. After ignoring all this, Konczal makes his declaration that the market has failed and calls for even more interventions which will further distort markets and incentives. Amazing,
Absolutely incredible the kind of nonsense that is in this report.
ReplyDelete"The balance-sheet recession theory argues that as consumers’ balance sheets shift to having far more debt than assets as a result of the collapse in housing prices,they will cut back on consumption until their household balance sheets are “repaired.” Precautionary savings will increase household savings even further, which can further hinder the potential output of the economy."
That's right. Those idiot consumers are starting to do this reprehensible thing called 'saving' to 'repair' their balance sheets. These poor miserable idiots need us, their benevolent government, to lower interest rates so they can take on even MORE debt and get this economy going again.
As we all know, the economy can only grow when consumers spend their income, even income they don't have, as fast as possible, even on things they can't afford.
11 U.S.C. § 1322(b)(2) of the bankruptcy code prohibits the modification of loans secured by the debtor’s principal residence.
ReplyDeletehttp://www.law.cornell.edu/uscode/text/11/1322
So, according to the "progressives", is that a failure of "the market"?
To the Oppressives, everything is a "failure of the market." Did you stub your toe on the leg of your coffee table this morning? Market failure!
DeleteProgressive, socialist, or what ever interventionist form of economics you want to promote is really no different than promoting alchemy. Like alchemy, you can promote it all you want, but at the end of the day you still have a pile of s__t and no gold.
ReplyDeleteThis was a good suggestion that you put up here...dude…..hope that it benefits all the ones who land up here.
ReplyDeleteAlberta Mortgage
Proof once again, that there is clearly no shortage of PhDs, economists, and Nobel laureates that can't find their backsides with both hands. Why do we continue to suffer these fools?
ReplyDeleteWhen all of your advocated policies turn out to be epic fails, at some point do you not stop and ask yourself, "Why does everything I believe turn out to be crap?" The mere fact the Krugman praises this load of guano should make any thinking person run to the nearest exit...
Could it be that our species really is too stupid to save ourselves? Then I read EPJ and my faith is restored. Thanks Robert.