Don't Believe the Hype

In the midst of NYCO's public housing rant, I thought about an important point. Housing prices are going up, and quickly. This and other factors of daily life are making it difficult out there, and some people are trying to ignore it.

Real estate in big cities and all around NY is getting more expensive all the time. That raises tax levels on property and digs into paychecks. To top it off, people are buying houses on margin, with interest only loans. The economists claim there is a housing shortage and "bubbles" only exist in some cities. Don't believe it. People like this went on the business channels and said Enron was a long term buy. For those who don't know, back then buy meant hold, hold meant sell and sell meant line your birdcage with the stock certificates.

Gas prices are up since the end of the go-go 90s. In five years, the price has gone up 75 cents (30%) in about 5 years. That represents 7% a year. If minimum wage grew that fast, it would be $7.25 instead of $5.15. Again, the experts bring out concepts like energy speculation (hello Enron) and a robust economy that can take high gas prices. They should get a look at business when people can't afford anything because all their money is going to the Middle East.

While I'm on the subject of oil, one of the biggest wasters is China. They use something like 10 times the amount of petroleum per product that Japan does. They also have a system of paying almost no wages because they provide subsistence level services to the people. China is the perfect model for the out of control monopoly. It disturbs me that we don't trade with Cuba but have a half trillion dollar trade deficit with China. This is not capitalism.

I'm tempted to continue this into illegal immigration, but I'll settle for 3 points.