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View Diary: A Do-Over for Bank of America, Again? (68 comments)

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  •  Reinflating housing prices... (5+ / 0-)

    ...I think that you're right about them hoping that housing values would recover and render the issue of bad mortgages largely moot.

    And you're right that it won't happen -- at least not without inducing broad inflation in the overall economy, which is not an idea that they're willing to consider. (I'm not saying that they should, either)

    Housing prices in too much of the country had become completely unsustainable -- households with median incomes around $60k/year simply can't afford to buy a home in a market where the median house sells for $400k or higher, and that described far too many areas in 2006.  But if you're wealthy, the housing market looks very different than it does for the rest of us...and I think that probably does blind Obama's economic team to the reality of the situation -- they look at numbers and don't really understand the people behind those numbers.

    Political Compass: -6.75, -3.08

    by TexasTom on Sat Aug 27, 2011 at 12:57:57 PM PDT

    [ Parent ]

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