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The Unexpected Corollary to the Invisible Hand
Illinois Review ^ | July 29, 2012 A.D. | John F. Di Leo

Posted on 07/29/2012 7:27:58 PM PDT by jfd1776

Why has housing been stalled for years? Because people lack confidence, say some. Because there’s not enough liquidity, say others. Because here the taxes are too high, or there the neighborhood has become too dangerous, or over there, there are no jobs, or away over there, the traffic congestion is so bad, nobody wants to live there anymore.

So the government offers loan programs… tax credits for new homebuyers… new rules forcing banks to Make More Loans or be shut down. The government does everything it can think of to fix the symptoms, and most importantly, when nothing else works, to make excuses.

“It’s because we were overbuilt before, you know,” says the government’s economist, or the economist on the government’s side. “Irresponsible businesses were building more houses, more apartments, more condos than were needed, so now there’s a glut. It’s all their fault.”

The economist says it on the radio, on the TV, in congressional testimony, in White House briefings. So people believe it. “Don’t worry,” continues the economist. “We’ll be fine once the bubble bursts, once we find the bottom. We’re just not at the bottom yet.”

(Excerpt) Read more at illinoisreview.typepad.com ...


TOPICS: Business/Economy; Government; Local News; Miscellaneous
KEYWORDS: economy; foreclosure; government; housing

1 posted on 07/29/2012 7:28:13 PM PDT by jfd1776
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To: jfd1776

A good article. Thanks for posting.


2 posted on 07/29/2012 7:57:36 PM PDT by jeannineinsd
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To: jfd1776

ping for later


3 posted on 07/29/2012 8:49:29 PM PDT by Washi (The secret ingredient in a Chick-Fil-A sandwich is liberal outrage. Delicious.)
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To: jfd1776
"Why has housing been stalled for years?"

Residents have been crushed by regulatory attacks and tax hikes. There are zoning regulations against new, small manufacturing starts even on larger properties in remote areas. Fatherhood was destroyed in America. The birth rate is way down. We Baby Boomers will be leaving you for the next 20 years or so. Nearly everyone with a large income is directly or indirectly dependent on the flow of government debt/revenues to them. Many more reasons.

Give it up. Residential real estate will be a goner for a very long time. The only things that could save it would be extreme decreases in property taxes and regulations. Let real men get to work again at drilling, mining, small shop manufacturing operations, etc. Or continue to watch instituted social pathologies (so-called progressivism, which only survives with big government funding) go away.

Suits me just fine, watching socialism starve. The more for-sale signs displayed by spendthrift socialists for more years, the better. There go the most troublesome gossips and busybodies in the neighborhood.


4 posted on 07/30/2012 6:58:38 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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