[lbo-talk] Goolsbee: subprime was pretty groovy (in 2007)

Michael Smith mjs at smithbowen.net
Mon Dec 1 07:39:59 PST 2008


On Mon, 1 Dec 2008 07:38:39 -0500 Doug Henwood <dhenwood at panix.com> wrote:


>
> On Dec 1, 2008, at 7:14 AM, Michael Smith wrote:
>
> > The original (narrower)
> > one here was whether handing out mortgages like Mardi Gras beads
> > was in itself a Good Thing as far as it went -- spreading the wealth
> > etc.
>
> Lending lots of money to buy an unproductive asset like housing does
> nothing to spread wealth around. It spreads debt around and inflates
> prices. Until the bubble bursts, that is.

Doug has made my point for me better than I did.

--

Michael Smith mjs at smithbowen.net http://stopmebeforeivoteagain.org



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