A companion piece for today's Shadow Shot Sunday.
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Saturday, November 16, 2024, Zhouqin Burnikel
20 hours ago
This should be the best time of life, but . . . (instead, we are become flaming squid huggers)
Look: I am eager to learn stuff I don't know--which requires actively courting and posting smart disagreement.
But as you will understand, I don't like to post things that mischaracterize and are aimed to mislead.
-- Brad Delong
in an act of shockingly retro, sexist stupidity, a local unit of the Republican Party of Minnesota has broadcast a new reason you should vote Republican: GOP women are hot, and Democratic women are not.
. . . “what problems do you think are important today that you didn’t think were important in 2004, and what policies would you favor now that you would have opposed then?”. My answer is that low house prices are a problem today where I would previously said low prices are just transfers from sellers to buyers, and I would favor policies that prop them up when I would previously have opposed them. What are yours?
My view in 2004 (or maybe it was ’05) was that the prices in both housing and crude oil were in bubbles – parts of the rolling bubble phenomenon as mis-distributed financial assets, aided and abetted by a lack of regulation and the proliferation of derivative instruments that nobody knows how to evaluate, roamed the world in search of the next big killing, rather than being channeled into any productive investment – and that there would be problems when they burst. Oil prices have held up more than I thought – I really expected well below $50 by this time.
Actually, I think all the problems of today were problems in 2004 – a futile, misplaced, no-win, war effort, extreme and growing wealth disparity, tax policy close to regressive, the choking of the middle class, and an economy on the edge of depression. The latter was pretty well concealed at the time, but I always thought the alleged recovery from the 2001 recession was a chimera.
And I disagree with you about housing prices. They only look too low by comparison to previous bubble-inflated valuations. By rent income producing capability or any other look at fundamentals, they still need to come down. This is really bad news.
We have a long hard road ahead of us. I think the naughts were a lot like the roaring 20′s, with the rich getting richer and the poor struggling with an ever-smaller slice of the pie; and if policy is made by folks who think like Gary, above, channeling Andrew Mellon circa 1930, then the next great depression is far more likely to become a reality.
Sadly,
JzB
. . . It’s not that so much has changed, simply that people are becoming more aware. . . .
It turns out that allowing the Bush tax cuts to expire will only hurt people earning more than $300,000 per year. And it appears as if keeping the Bush tax cuts in place would force people earning $60-150,000 to pay slightly more.