Propaganda: “Rising Home Prices Are Benefiting Everybody”

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Subject:	MORE – Re: American Propaganda: "Rising Home Prices Are Benefiting Everybody"
Date:	Tue, 12 Nov 2013 08:27:50 -0800
From:	Jas Jain

MORE – Re: American Propaganda: "Rising Home Prices Are Benefiting Everybody"

Lando: "Oh, come on! Again the same slogans? Are these morons using the same tricks of few a years ago? Dopes have no memory. Amazing."

The same Chief Economics Editor for Bloomberg was trying to buttress the case that QE is helping the economy and "everybody" in the process. He explained that the primary tool, or mechanism, that the Fed uses to help the economy is via rising stock prices and rising home prices, i.e., "the wealth effect." The magical powers of Asset Inflation! Therefore, the best measure of the success of the Fed policy is: how much have stock and housing prices gone up

He did admit that rising stock prices now, as opposed to late 1990s, mostly help the wealthy. Then he threw in the line that appeals to born-and-bred American dopes: "Rising tide lifts all boats." The same old trickle down economics from the Reagan Era. What has actually happened since 1980s, and most evidently since 2008, is more like trickle up poverty. Just wait for the next recession and the trick up poverty would become jumping up poverty with 30-40% of Americans receiving Food Stamps. It couldn't happen without the help of born-and-bred American dopes who have no understanding of the underlying causes and incessantly engage in partisan blame game.

Jas

Kirk Here:  I get a chuckle out of how some who have the title "economist" don't understand that someone with a paid for house that had all their retirement in CDs and US Treasury Bonds to supplement their Social Security would do much better with DEFLATION as their savings would buy more and their property taxes would not go up and perhaps even go down.  As it is now, they get a dismal return on their savings due to artificially low interest rates and QE while they get to pay higher property taxes every year due to rising real estate prices.   Those of us smart enough to see this ahead of time and have diversified (with both stocks and fixed income) are doing great with the market gains more than making up for dismal return on fixed income.  As the market goes higher, I take profits so if it eventually collapses, I'll have more cash now then had it stayed flat...

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