Treasury Secretary Hank Paulson thinks the whole problem of the financial crisis is because of the Pricing correction on houses. He just said this in his testimony statement before the House Finance Services Committee.
THAT'S JUST WRONG
People cannot afford these prices because they offshore outsourced the jobs, brought in cheap labor to undercut US workers and their wages and enabled the biggest global wage arbitrage since slavery!
It's also plain wrong on the cause, which is unregulated derivatives and the shadow banking system.
The median price of a home, nationwide is still over $210,000 and the fact is people simply cannot afford that. In cities where the jobs are...it's much higher.
NAR Study and another site for salary comparison to housing affordability per region: paycheck to paycheck.
Paulson is just yet another communist
And that comes from somebody who's nick on slashdot is Marxist Hacker.
The difference, to me, between a Marxist and a Communist: Marxists are egalatarian, and want to engineer the economy to "float all boats equally". Communists are for CP members only, and are willing to subjegate slave races and conquored countries to deliveer goods to the central party.
I see NO difference between what Secretary Paulson is doing to the American Taxpayer and what Stalin's 5 year plans did to the Ukranian Farmer. None at all.
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Maximum jobs, not maximum profits.
This is absolutely BS
I'm sorry but it really is. There are a host of things they could do immediately that are bottom up such as a HOLC and regulation...to alleviate the toxic paper.
But to try to prop up housing prices to their unaffordable levels is pure bs. Something has to give. Either prices come down or wages go up. Those prices are artificial by their exotic mortgage vehicles which almost guaranteed a foreclosure in a few years because people simply cannot afford to make the payments.
latest Paulson testimony absurdity
Paulson is trying to peddle this as being for the people. What BS if it was for the people they would enable a restructuring of mortgages through bankruptcy and a HOLC.