Inflation Abatement Check Update

The average car owner will spend about $375 more this year than last year just on gasoline, or 63% of that $600 “rebate” check. Sum the higher costs of energy, food, utilities, insurance, and tuition and that $600 check is already spent by inflation. Sad that so many recipients think they are going to be able to save it.

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WSJ - The policy alternatives in the post-housing-bubble world are painfully unpleasant. In my view, the least bad option is for the Federal Reserve to print money to help stabilize housing prices and financial markets. Yes, use reflation to soften the pain for Main Street and Wall Street. If instead we let housing prices fall another 25%-30% – as predicted by the Case-Shiller Home Price Index – it's almost certain that Washington will end up nationalizing the mortgage business.