Government Uppers and Downers
Jun 16, 2010
Who would have ever guessed that the housing market would plunge in May after the special April tax credits expired?
Once again we see that when government passes a "stimulus package," it is like a drug. It costs a lot and only works temporarily. When the drug wears off, then comes the plunge. The government refuses to actually fix the problem, because to fix it would require removing the Fed from its position of power. That is unacceptable, since no one will ever be elected president who would do such a thing.
So the only alternative is to inject uppers into the economy until we run out of money to pay for it.
The only good thing about that tax credit is that it actually put some money into Main Street instead of Wall Street.