Arthur Laffer, of The Laffer Curve noteriety, opines that the end of prosperity in this country has arrived. I recommend the entire article. This was the money shot for me:
No one likes to see people lose their homes when housing prices fall and they can't afford to pay their mortgages; nor does any one of us enjoy watching banks go belly-up for making subprime loans without enough equity. But the taxpayers had nothing to do with either side of the mortgage transaction. If the house's value had appreciated, believe you me the overleveraged homeowner and the overly aggressive bank would never have shared their gain with taxpayers. Housing price declines and their consequences are signals to the market to stop building so many houses, pure and simple.
HT: Maggie's Farm "Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for."
Monday, October 27, 2008
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