h1

Bailout delays recovery

October 9, 2008

Last week I said that the bailout, by easing the fall of land prices, would delay the recovery.  Now Vernon L. Smith agrees with me.

To the extent that the bailout shores up existing home prices and its paper, it delays the inevitable.

WSJ 10/9/08 “There’s No Easy Way Out of the Bubble”

A couple of loose ends here.  One is that Vernon says “home prices” whereas (as I assume he knows) the bubble was more in land prices than structure prices.

The other is that the article was sloppily copyedited, “its paper” probably should be “related paper” or something like  that.  And earlier, it says “[T]he crash has been exasperated by the increase in oil prices.”  I guess Rupert has outsourced the copyediting to…somewhere not so sharp on English. It’s exacerbating.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: