Over the past several months, whenever we have heard the pundits discuss solving the current economic crisis, they have used the words, "We need to stabilize housing prices etc...."
It is natural I suppose. For folks that have overpriced assets to believe that the crisis will be over when the decline in pricing ends. For them it would. However---the essential problem was...and still is...overvaluation.
In the larger view---in times of ASSET DEFLATION, there is no hurry. No hurry to buy. No anxiety at all for the wise purchaser. Because. In every transaction. In every day...in every way...things are getting cheaper.
Asset deflation in the 1930's was countered by bold federal action with the programs of FDR----bank holiday----foreclosure holiday----etc. We are seeing the first of the boldness that will have to take place for an extreme deflation to be avoided. There is a time for government...and a time for regulation...and that time is now.
The Evansville Observer Archive: The unofficial history of Evansville, Wisconsin from 2005-2013: Thousands of Video and Audio and Articles; Free: To Search scroll to the Search this Blog line and enter name of person, topic, or issue. Then scroll up to see all articles. Or use Google Search by topic. Enjoy.
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