Greedy Neighbors?
My neighborhood has very few greedy people. In fact, it is almost a utopia. We do not need gates, security guards, etc etc adlib. Everyone knows everyone else, even their name. Most folks are either retired or have a job doing something useful. None I know went in over their heads.Our homes are older, small, but well kept. The homes were built on the sandy, rugged soil not suitable for cultivation. The community was founded in 1686. That is a long time for an "ownership society" to exist. We must be doing something right.
The people who got bailed out generally live in "gated" communities, would not give their neighbor the time of day, and trade shares for a living. They bought during a period of relatively low rates and went in over their heads. Bernanke reset rates at zero to save them. Some of the millionaire bankers got outright grants from the government (that is-us).These are the people I'm talking about, not the people they took advantage of. Sorry, I must have miscommunicated something.
When I first bought a home Paul Volcker was fed chairman. He slew the inflation dragon. More recently he assisted the Obama Administration in stopping the big banks from investing in hedge funds and other risky investments. He was head of the President's Economic Advisory Board for 3 years ending his term in 2011.
I suggest a return in Volcker's direction to limit overconsumption and enhance sustainability.
It does not benefit me to have an overinflated house value. All that does is raises property taxes and insurance costs. The young and un/underemployed would be better off if they were able to afford food, clothing, and shelter. Lowering interest rates to encourage borrowing to buy something worth less than its value when interest rates inevitably rise is extremely dangerous. A job that pays worthless paper is worse than no job. No job is worse than a job that actually pays wages which can be saved and used later.
We need to focus on sustainable employment. The current economic environment is not sustainable in the long term. You cannot print your way out of a monetary crisis. Sometimes a little deflation is a good thing. The initial pain is more than compensated for by the later rewards.
I would like to end this diatribe by noting the great website on recipes Ms Rota is involved in running. It has some very helpful information. Seems to me some young women are really capable of having it all, even nowadays. "You go, Ms Kara Rota!"
