Earlier in the morning I was listening to the parts of Bernanke Bear collapse testimony and it gave me some hope that Congressmen’s brains are located in the upper parts of the body. Specifically, they worried about:
- Moral hazards of the bailout
- The fact that unregulated entities are allowed to discount window, i.e. they must be regulated
But later I’ve learned something that made me think that a typical Congressman, at least in his “bipartisan” modus vivendi, has his brain located in bottom parts. They came to a deal that allows homebuilders to get a tax break.
As the housing problem worsens and builders continue to build homes just to get rid of empty land the better solution would be to bankrupt as many builders as possible. We don’t need no stinky new homes