Lather, Rinse, Poison, Repeat

Joe Doakes from Como Park emails:

Some experts believe the policies that led to the 2008 real estate collapse are still in place leaving us as vulnerable to a real estate bubble as before. They are mistaken.  We’re worse off than before because now we have newer and even stupider ideas to help preferred minorities qualify for home loans such as counting all incomes in the household toward the loan.

The problem was explained in 2010 by Glenn Reynolds:

“The government decides to try to increase the middle class by subsidizing things that middle class people have: If middle-class people go to college and own homes, then surely if more people go to college and own homes, we’ll have more middle-class people. But homeownership and college aren’t causes of middle-class status, they’re markers for possessing the kinds of traits — self-discipline, the ability to defer gratification, etc. — that let you enter, and stay, in the middle class. Subsidizing the markers doesn’t produce the traits; if anything, it undermines them.”

And that’s the best-case scenario, when the government isn’t actively working to destroy middle-class values by subsidizing bad decisions and penalizing good (but politically incorrect) decisions.

The divide between the wealthy and the wretched ever widens and Liberals cannot fathom why.  It’s because of Berg’s 21st Law: Liberal Policies Destroy Liberal Values.

Joe Doakes

That one’s almost beyond mere “law.

3 thoughts on “Lather, Rinse, Poison, Repeat

  1. There are many financial experts out there that are watching auto loans, stating that those will create the next crisis.

    On a side note, leases were a cheap way to get people into new or better cars, if they had good or even marginal credit. Unfortunately, so many of those cars are coming off their leases that the used car market is flooded, driving down prices. Anyone looking for a used car right now, will be in a great buying position.

    If those projected loan defaults start hitting, it will be even better.

  2. Back in 2009, I had a great time walking a class of high school seniors through the reasons that fiat money, fractional reserve banking, and debt worked together to destabilize economies. Everybody thinks they can “ride the tiger” until they cannot.

  3. But you can. Remember Milo? Buying eggs for 3 cents and selling for 2 and making once cent profit?

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