yes sp, agreed. but the US are a long way past being 'able' to inflate housing prices using this principle. They've implodes on a scale Ihonestly think was previously unimaginable.
IMO, the US govt has to now own the toxic debts that have been allowed to accumulate. this has to be the base on which to allow recovery. doing this however without gaining recompense and reforms from the financial market is not the way to go about it.
They need to reassess the marketable debt entries and remove all toxic debts from this (or at least make the investments banks accoutnable for a good portion of this). otherwise the inward spiral of doom is a self fulfilling prophecy and the US will become page notes in history (ok, a bit emotional there).
The debt market is OK as long as it's fully tranparent and has accountability.
The previous government knew what was going on, knew what the magnitude of failing was, people were reporting thit, and they did nothing about it. this needs to be fixed before ANYONE thinks of recovery, even the coveted commentators. Meanwhile, a lot of real people have to live, eat and breathe ....
