According to Establishment cheerleaders and evangelists, the housing crisis is now over. It conjures in my mind an accident scene: "C'mon people. Keep moving. There's nothing to see here." Hmmmm... Just about a week ago, the Federal Reserve contributed mightily to the primary ingredient that caused the housing crisis in the first place. By socializing the liabilities for stupid investments, Timothy Geithner's plan for dealing with bad bank assets makes the economic situation even worse. Those who really think the housing crisis is over don't understand the problem. Problem #1: Federal Reserve Prints More Funny Money. On March 19th, the Federal Reserve produced more of what it's best at producing --funny money. With the country sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy. This is supposed to fix something? The...
Politics is seldom simple. But the truth usually is.