Socialize The Losses

At every opportunity I listen to Tom Sullivan on KFBK in the afternoons. I listen to his ideas on fiscal conservatism. That's a good label for my own personal financial approach to things. Nonetheless I'm quite left-wing as it applies to social issues and this usually trumps voting for fiscally conservative candidates. The God, Guns, NASCAR and CORPS attachment to fiscal conservatism makes me want to puke in my soup.

I enjoy the hypocrisy of a well-known wealthy fiscal conservative enjoying the fringe benefits of a public bank bailout. Had the government not blown a trillion to prop up housal unit values he'd be short-selling it at an even lower price than the artificial prices that units are commanding.

I personally believe that prices should drop even more to return to historical norms...but think of the damage another 15% would cause the banks...would cause the homeowers...would cause to the ancillary services of refinancing, HELOCing, and carpet installers...would cause to Fannie and Freddie where 96% of all new mortgages end up. Perhaps with another 15% drop would come 15 years of stagnant Elk Grovian low-density sprawl. Maybe by then the city council members would come to realize that this type of growth is destructive. Maybe not. But for the next 15 years, the rest of us can live without the threat of groan! more development! More traffic!

Things are looking up.