Andy Laperriere: The High Cost of the Fed's Cheap Money - WSJ.com
There is also something going on here - call it a Democratic / union / Socialist mindset - that firmly believes big government and unions create prosperity and an efficient and productive allocation of resources.
This point was brought home by comments on Bloomberg this weekend talking about the consequences of the high taxes in the New York City suburbs (Nassau, Suffolk, Westchester) that are required to fun the benefits (including pensions and current salaries) of public employees.
They point out that for a small house on a 60x100 plot the property taxes can be $50,000 per year.
Effectively, the 'consumption' demands and greed of public unions has distorted the economy such that middle class (let's say private sector) workers can no longer afford to own a home (combining mortgage costs with property taxes).
As this article points out, union-derived shifts of assets to consumption (wages, benefits and retirement) instead of assets like housing has a consequence - a dire consequence.
Obama and his supporters clearly don't want to let air out of their economic model's balloon, which could lessen the strain. Instead, they only really want to talk about more taxes on those who invest and create jobs. We are still recovering from the housing balloon. A burst borrowing balloon will be much worse. It likely won't get as bad as Zimbabwe (???) but Greece has seen its GDP go down 20% - and that's with the rich EU sending them lots of money. Who will be there to bail out the Fed and Washington?
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