Wednesday, December 3, 2008

Poetic Justice.

It's interesting to see what is happening in the economy and the markets. Our recent economic capitulation has been a well due punishment for the unwarranted bullishness and greed running rampant--people buying homes they can not afford, things they cannot afford and putting it on their charge cards.

Now, when it comes time for someone to pay for these imbalances, the taxpayer becomes the scapegoat. Humility and individual repayment ought to take place, but the taxpayer has been forced to participate.

In my opinion, to attack the root of the problem, eg., bad mortgages/foreclosures, and financial institutions originative of these, (this equivocally applied to other borrowed products and sources), we need to provide an incentive for the buyer, not the holder of these. The problem is no one desires these products at such a price, hence the excess invetory. how about incentives for buyers. We can do this by capitulating house prices, and by providing incentives to buyers.

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