(Government ) if you fail to properly identify the problem, your solution is bound to fail.

[2Design]

http://thehousingbubbleblog.com/?p=4956#comments

Comment by Ben Jones
2008-09-23 04:47:30

My journalism friend from USC highlighted this quote from an economist at Moody’s in the CA thread last night:

“I just want to take a moment to savor this….

“you can gain back at least part of the peak value that was there before the housing bubble”

“Wow. Just… wow.”

I’ve said it before; if you fail to properly identify the problem, your solution is bound to fail. It’s like trying to get someone who is screwing up their life to get right with the world and they head in the opposite direction. I’m no socialist, but the government would be doing better to say, “we are going to fix every bridge, overpass, port and highway in the country,” than what they are doing. The people I interact with everyday are worried. The economy is going to hell and Washington is focused on mortgages. This was a once in a lifetime housing bubble; it ain’t coming back, and neither are the prices.

Comments like the one above are are akin to acknowledging there has been an earthquake, but denying that the ground can move.

[UnrepentantUnitarian]

1. Identifying and treating the cancer is even more essential than...

...applying short-term bandages. I agree, Ben. The problem with the economy is systemic and demands a systemic regimen of treatment. Sure, we can ease the pain in the short-term, but our major focus should be--must be--on combatting and changing the very mindset and trickle-down ideology that caused this in the first place.

And...somewhere along the way we need to overcome that erroneous notion that corporations have rights that are equal to or greater than those of individual human beings rights. The right-wing courts have been aiding in the ruining of the social fabric of this nation by encouraging the notion that big business has "constitutional rights."

We can assume that this kind of fundamental change of mindset will not come from the Republicans. Let us hope and pray that it will from the Democrats.

[Bandit]

2. A once in a lifetime housing bubble

I don't buy that at all. Real Estate is and always will be valuable. It has been stated and in fact has been borne out that most real estate value doubles over a ten year span. This has held true for more than a hundred years. Why should that end just because some unwise loans were made? While I do believe this is a current scam for the wealthy to buy up properety dirt cheap, real estate will always be a valuable commodity.