WhyTheHeck

I hate to be one of those I-told-you-so guys (not!) but way back in April I predicted a second round of stimulus, in 2010. I pointed that that the housing bubble was like heroin, and the first stimulus was like Methadone to prevent the economy from going “cold turkey” after the housing bubble burst.  (That [...]

For years Americans spent most of their income largely on the assumption that their increasing home values provided wealth.  The entire economy, from retailers to restaurants, builders to banks, expanded to capture this spending.   Sustaining the increase in home values which generated this apparent wealth required the reduction of interest rates and the relaxation of [...]