patrick.net

The housing bubble, I believe, is itself largely a consequence of moral hazards caused by Fed interest rate manipulation, GSE risk underwriting, and a powerful pro-housing bias in American tax laws.

I'd agree with that, although the bubble is occurring in a dozen countries at once - altho US interest rates tend to affect the rest of the world, and lenders are global institutions nowadays. The Oz govt encouraged investment borrowing by reducing capital gains tax on investments and allowing deduction son investment losses, leading to a spruiker/guru's paradise, the rise of massive greed and selfishness in those who already had some equity, etc. as documented elsewhere here...

I've also noted elsewhere that central banks only have one lever left these days, being interest rates - not exactly a multi-faceted instrument to finely tune an economy.

I stand by my comments in defence of human life and a more civil society being contructed through positive welfare measures. I've noted that the incarceration rate in the US is some 6-10 times the rate of comparable countries, and higher than Russia. Please read bap's inflammatory comments starting the ball rolling if you want to know why I get progressively more upset with certain attitudes. I have no sympathy for people worried about not being able to buy a $2m house who in turn do nothing and feel nothing for people less fortunate than they are.

All governments are armed robbers. The only role of the government is to leave us alone, disappear, run away, or die.

I have no sympathy for people worried about not being able to buy a $2m house who in turn do nothing and feel nothing for people less fortunate than they are.

Nor do I. The only caveat I would add is, public assistance for the able-bodied/able-minded should be limited to the "hand-up" type and geared towards weaning people off public assitance when they are abke to sustain themselves. I have seen far too many cases of generational welfare. While this doesn't represent a majority of those receiving aid, it has a corrosive effect on society and clearly undermines the incentive to work and to become self-sufficient.

Ditto for corporate welfare --if a company cannot stay in business without perpetual government aid, then it should be allowed to fail and be replaced by a company with a more efficient business model. Taxpayers are actively subsidizing losers, which hurts our competitiveness and economic health in the long run.