Sunday, May 24, 2009

Lux has some answers

Lawrence G. Lux nails it. Read the post, it makes sense, with two provisos.

1) The problem is really inefficient use of gasoline, but the housing bubble sure did not help.
2) The solution is right, remove the Bush tax cuts. I add one more, raise the short term rates as Taylor recommends.

The essence of his post, if I can be interpretive here, is to keep the housing problem within the housing sector, though the taxpayer will have to take its losses with the Freddies and Fannies.

On the energy front, it really is up to state and local government to remove their imposed bottlenecks to transportation efficiency, if they refuse, then they accept a permanently lower level of output.

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