On Apr 22, 2008, at 2:07 PM, Joseph Catron wrote:
> Doug, am I correct in thinking that Angry Renter's position echoes
> Dean Baker's in some respects?
Yeah. He's vague on how to handle the financial fallout - in his writing, he seems willing to let "The Banks" go down the drain, but when he was on my radio show, he said something about how "of course" we have to assure financial stability. I don't know how you do one without the other, though. He also says we should let house prices continue to fall until they come back into some kind of "normal" range, which will be hell on the balance sheet of the middle class (sorry, Carrol!). There's no compelling reason to try to keep house prices high, or get them rising again, but even flatness would hurt a lot of people.
Doug