Tuesday, May 1, 2007

Government Doublespeak Sustains Housing Bubble Inflation

Wanted: New Signs

Treasury Secretary Henry Paulson used the “nothing to see here” tactic:

“All the signs I look at" show "the housing market is at or near the bottom” (TMO).

That is entirely possible—as long as you can get your underlings to show you only the wrong signs.

How To Stop Progress

Senator Chuck Schumer (D-NY) used the opposite, fear-mongering, crisis tactic:

“The subprime mortgage meltdown has economic consequences that will ripple through our communities unless we act” (TMO).

True, as long as you do nothing, housing will become more affordable for millions.

Paulson and Schumer seem opposite at first but both their statements try to keep housing expensive by propping up record high prices (relative to economic fundamentals).

No comments: