Either capitalism should be allowed to work or it shouldn’t – For example, people should be able to afford the homes they purchase and if they buy one that is too expensive they should have to take a bath on it. All this fuss about the housing bubble is bewildering to me. People who didn’t have enough money to buy a thousand square foot home in Southern California for $800,000 but bought one anyways, got what they deserved and the bank that lent them the $760,000 got what they deserved too. And now our government wants to find ways to bail them out. Oh, the poor people who bought that expensive house are getting foreclosed on and they will be out on the streets. Well, I have one word for you: rent! People who can’t afford a house can rent a place, a lot of people do it and it is nothing to be embarrassed about. Foreclose on them, and since nobody will buy the house at the same price, lower the price. This is free market capitalism. Remember, supply and demand dictates the price? Instead we are throwing money at the banks to try to save them (tax money that we have yet to pay). Why? Banks came up with all these ways to entice people into borrowing money, now they should pay the price. If the government tries and succeeds in preventing any pain here and now, we are going to crawl through this recession for years and years. Or better yet, create another bubble, maybe an equity bubble this time. Actually we’re too late, this has already started and the new equity bubble is going to burst as well.
Generally I mind my own business and dedicate most of my blogs to goofy things like my high-tech toilet in Tokyo, curry or music. So you’ll have to forgive me if I talk about something serious here. This is sort of like the Dixie Chicks with their controversial George Bush comment, so if you don’t want to hear me talk politics, skip this and look at my other goofy blogs. I can’t help it, America is getting weird.
Showing posts with label housing bubble. Show all posts
Showing posts with label housing bubble. Show all posts
Tuesday, March 8, 2011
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