Economists

Martin Feldstein pisses me off! He keeps talking about solving the falling house price problem and the foreclosure problem. The problem is this: we have too much debt in the world that can not be serviced. Lowering interest rates may help but the ultimate remedy is that this debt will default and the owners of that debt will take some losses and learn a lesson. The housing prices and the foreclosure activity are symptoms of this larger problem we face. And with people with credentials like Feldstein go out and talk about "fixing" these problems they are hurting more than helping because they give a lot of people a reason for optimism that has little basis in reality.

Of course I am not a Harvard Professor of Economics so what do I know?

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