Tuesday, November 13, 2012

the paine principle housing :bubbles are us

"look ......forget ranting about the house lot bubble":



"its all just part of the usury macro policy cycle

get it ?

USURY  macro
   is the major outcome when a homeostatic credit rationing system
   is used  to regulate wage rates


ya that's eccentrically phrased and deeply compressed

 but
if not a house lot collateral buibble
what else can induce adequate effective demand ?

if wages are systemically suppressed

trade is out of balance

 and
spontaneous market mediated income distribution
is ever more skewed toward high acumulators
not high spenders

we have either structural deficit or stagnation  problems

reagan supply side got growth all right

in the value of relatively scarce  assets
that
and the credit hop up
keeps brewing  asset  bubble trouble

asset bubble trouble
that is our present arrangement's middle names


my pal owen paine kicks this around so ....

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