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

To: Steve Lokness who wrote (125583)	11/25/2009 8:46:13 PM
From: Mary Cluney	Read Replies (1) \| Respond to of 543167

<<<Oh boy do we disagree here. As housing values continue to fall more and more and more people are underwater on their mortgage. These people are stuck - they can't sell. That is not a pent up demand to buy it is a pent up demand to sell. .........To make matters worse with a real unemployment of over 17% - that is a real tug to pull housing values down more yet. >>> We disagree on multiple levels. I am saying I detect growing pent up demand for housing but you seem to be saying just because more people are homeless does not equate to more demand for housing. There are two different things going on here. I am saying there is growing demand because there is population growth and because of demographics resulting in more households being formed. What you are talking about is (in your view) a sluggish economy caused by a lack of demand as result of personal financial mismanagement on the part of many individuals. This where macro economics comes in. Most economists in today's world subscribe to Keynesian economics. The demand for housing is a good example of the differences between Austrian and Keynesian schools of thought. You seem to be saying that the only cure is to tighten our belts. Get used to suffering and things will naturally turn around. I just happen to think Keynesian solutions sound a lot more convincing.