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I’m tired of reading about the American economy’s “mysterious” non-recovery. The lack of recovery isn’t mysterious at all. The economy hates uncertainty, and Obama has introduced more economic uncertainty than we’ve had since Hoover and Roosevelt started violating the law of supply and demand 80 years ago.
Our present crisis was caused by federal policies demanding that banks make bad housing loans to people who couldn’t afford their mortgages. Fannie Mae and Freddie Mac’s $500 billion in mortgage losses still haven’t been added to federal red ink totals—and both are still out there incurring more losses. Consequently we don’t know what a house is worth, now or tomorrow. (more…)