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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (125555)	11/25/2009 12:01:20 PM
From: Mary Cluney	Read Replies (2) \| Respond to of 543281

<<<But is it sustainable demand? For example, if there's a guy who's really poor and wants a 65 inch flat panel TV, well the demand exists, but can he really afford it? With cheap, permissive financing, he may be able to buy it, but is that really the kind of "house of cards" economy we want to perpetuate?>>> The answer is no longer black and white. To stretch the metaphor, there are millions of colors between black and white. The answer is clear. You can't choose to leave it entirely to the free market and at the same time you can't leave it up to government to do it all. Even in the very narrow example I gave wrt maybe 10-20,000 nits going up in brooklyn. Homeless people would love to live in those units. But, I am not talking about that. In the example I gave there is demand from a growing population and demographics that include new households being formed (although in my example there are a lot of single sex house holds but that just confuses things ggg). When banks starting lending again, the builders will imo still have to adjust their prices and maybe rent these units instead of trying to sell them. But government policy coud help. They could keep interest rates low, stimulate the economy, establish sustainable lending practices. But probably most important of all there should be regulation of the banking industry to insure they are into banking and are not operatiing unregulated hedge funds. The solution has to come from both the private and the public sectors.