asset-price reflation can no longer rely on interest rates alone, but must also use increasingly heavy-handed tactics to get the economy going
As Geezer says in his diary;-
When the "home equity loan" became the source of funds for consumption, we bailed out. We knew it was over- that the motors were now finally silent, that the system was losing altitude fast, and had to crash very soon.
To us this seems a statement of the bleeding obvious. However this obviousness seems to elude most commentators, politicians and their appointed administrators. keep to the Fen Causeway
The implication is that asset-price inflation is needed to get the economy going. Discuss.
as in say, housing prices going up again, so everyone with a toe-hold in the middle class feels rich enough to be a confident consumer again?
what other assets might be on the table for this?
carbon tax credits for bicyclists?
satyagraha spinning wheels?
can you have 'asset-price inflation' without it bubbling sooner or later, as all the speck-ers smell opportunity, and cluster, jacking and jockeying the asset's reputed value high enough to pay a foodchain of middlemen to suck as much as they can out of it as it attains necessary 'velocity'on its way from raw material to 'end-user'? ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
Oddly reminiscent of most of what passes for economics, certainly.
The wheels are spinning, people are earning merit, but nothing much is happening.
