No bailout necessary

You probably don't know me. I'm the one person in the world who explained and then predicted the magnitude and timing of the U.S. real estate bubble on the exact month of the peak in a professional economics journal (pages 37-8). Although that experience has, after the predicted 40% drop in median housing prices, run its course, a new problem has arisen. It concerns, of course, foreclosures. Our country's leading financial officials (the heads of our Department of Treasury and Federal Reserve Bank) have proposed to bail out an enormous array of overpaid wall street phonies in order to become a foreclosing creditor for 700 billion dollars worth of real estate debt -- even though they know nothing whatever about collecting or foreclosing on non-performing real estate debt. They cannot possibly do their traditional jobs, which they have normally done quite respectably, under such an administrative burden. The mess would continue, perhaps even worsen.All the Fed Chairman has to do is...(Read Full Post)