Professor Elam

S I Hyakawa came to fame during the student riots of the 1960s. His fortitue in not handing the keys to the university to those that would instantly re make it resulted in his election to the US Senate. He wrote a book, now out of print with the above title. It strikes me that during this political season, that title has a lot of meaning, partucularly as we listen to politicians.

Here are a few words you might take note of.

Fiat, no not the Italian car but the idea that one can make things so simply by ordering them.  Politicians are calling for even more regulation, Washington  should shortly fall below sea level given all the regulations on the books, but people find ways to subvert them.  Accountability is what is needed.  We have a fiat money system which got us into the problem. Otherwise the government could not have printed those mortgages from thin air, no down payments, nor could it 'bail out' everyone and anyone now in trouble.

We want to help people stay in their homes. Well there is a conundrum. If the homes beloged to those people they could stay in them. The homes however belong to their creditors, that is the problem. NOw that thebuyer has realized the 'home' is worth less than he or she paid for it and there is no down payment, there is no reason to stay in the home. This brings us to the next political wish.

Yesterday Chuck Schumer D NY with a Republican seated beside him, expressed the desire to pass legislation to prefent home prices from falling further.  This is surely wishful thinking. When did anyone ever 'order' a market to behave in a specific fashion and get what they wish.   Short selling has been prohibited for ten days, we shall see what happens when the rule is lifted.  What should we do, prohibit home selling, and only allow buying?  But wait, for every buyer there is a seller, so that won't work…..what to do?

And most home owners quickly discover they are not owners but targets. Targets for the insurance industry and every govt agency seeking money.  Typically one can be taxed by

School Districts

County Government

City Government

Community College Districts

Municipal Utility Districts

Add on various airport, port, and hospital authroiies

So are you a home owner or at ATM machine for limitless govt spending?

Let the home prices stop going up and this all becomes way too obvious, for people to stay in their

'homes.' Can Chuck make home prices go up, after all this really is what it will take to convince people to both pay ever increasing property taxes and remain there not objecting to this program.

good luck Chuck…