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US: We should use the power of our massive government to subsidize and guarantee 30 year fixed home mortgages.

House prices: shoot up

US: Surprised pichachu face

US: We should use the power of our massive government to subsidize and guarantee loans for college education so people can afford houses!

College prices: shoot up

US: Surprised pichachu face



All of this seems like a problem of leverage: the government's fiscal policy encouraged people to be levered up, then the fed's monetary policy allowed people to be levered up.

The "value" for any given thing (housing, college) remains similar, but more leverage for everybody means that same thing gets proportionally more expensive.

I don't see any way out of this except for popping the debt bubble.


Let's do healthcare now




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