November 2010

Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30        


MBM Principal Sources

Blog powered by Typepad

« Parking A Lot | Main | A “no brainer?” »

08 December 2008


Is this necessary

My take is that the several hundred people who are reading this blog daily do have some questions. Why not contact them and ask why they are not posting questions and comments?

It's probably the same reason few if any questions get asked during business update meetings.

Bobby L

I think the next bubble won't be houses, trains, or even ethanol per se - I think it will be a "Green bubble," and given all the legislation, and promises of millions of jobs, subsidies and mandates galore, etc., etc., that "we" really haven't learned anything from this past decade and it will be just as bad in about 8-10 years.

Lucas Pillman

Alastair Walling,

Thanks for the response, and yes, that did answer my question. I was actually a little (happily) shocked when I came back to see how you had so thoroughly answered my question.

I think both of your posts emphasize how much government intrusion into a market like the housing market always distort the market. The hard truth seems to be that there are too many resources located in the housing market right now, and that those who made the poor investment into these markets will have to suffer some form of loss. Will this fly politically? No. Government will continue to subsidize homes.

But investors might take note that government subsidies or insured investments like mortgage securities are not immune to the force of creative destruction moving resources to where they are valued most.

Alastair Walling, you graciously said you are interested in questions so maybe you can help me with what I am now scratching my head about. We have just discarded two government subsidy solutions to the housing market/bad loan mess we now have. Is there a politically viable alternative that conforms to free market principles? So far, free market ideas on how to deal with these toxic assets has been seriously lacking.

The comments to this entry are closed.