Conservatives for Printing More Money
Simply remarkable. Courtesy of Karen DeCoster, comes this bold and unabashed endorsement of inflation as the cure for the mortgage crisis. It is penned by John Makin of the American Enterprise Institute.
In case there is any doubt, here is who Makin supports in the election:
The policy alternatives in the post-housing-bubble world are painfully unpleasant. In my view, the least bad option is for the Federal Reserve to print money to help stabilize housing prices and financial markets. Yes, use reflation to soften the pain for Main Street and Wall Street. If instead we let housing prices fall another 25%-30%—as predicted by the Case-Shiller Home Price Index—it’s almost certain that Washington will end up nationalizing the mortgage business.