
Alice came to a fork in the road. "Which road do I take?" she asked.
"Where do you want to go?" responded the Cheshire cat.
"I don't know," Alice answered.
"Then," said the cat, "it doesn't matter."
~Lewis Carroll, Alice in Wonderland
Gizmo un autre qui ne fait presque la même chose que Google Translator's Boutons. Ils sont encore plus simple.
Everybody who is going on about the Reverend Wright and Senator Obama seems to be missing the fact that the problem is inherent in Mr. Obama's candidacy. He is running on a coalition of blacks and of prosperous middle class whites. There are inherent contradictions in such a coalition. The Reverend Wright has just graphically illustrated what some of them are.
If you read the responses, black people did not object to anything Reverend Wright had to say. Contrary to what people of both colors would have us believe, blacks often are not particularly fond of whites. Prosperous white people for the most part did not feel challenged by his remarks. They are in a position to patronize blacks and they do. Working class whites are not in a position to condescend to blacks and they resented Wright's remarks. They see black hostility as irrational ingratitude for what feels to them a painful policy of affirmative action, which they see as being largely at their and their children's expense.
I think we are seeing replay of the gulf of perceptions during the OJ trial. Every white person I talked to thought it was obvious that he was guilty. Every black person found it obvious that he was not. Even though everyone heard the same evidence in crushing detail.
My impression is that Wright's remarks also showed the same gulf of perception. He seems not to have heard that slavery has been gone for 145 years and Jim Crow for 40 years. That slavery was destroyed at a cost of a million young white men's lives during the Civil War seems unknown to him. But then again I am white and I thought OJ was guilty.
My theory is that Wright unconsciously DOES want to throw Obama under the bus. This man has spent his entire adult life condemning American society for its racism and unfairness. If Obama is elected president, what happens to Wright's cherished sense of grievance? If the nation elects Obama, Wright's whole reality and self-justification would crumble. It would be hard indeed to continue to rail against how racist white America is when it had just elected a black president. It would be harder still to denounce the racist government when it was headed by a black. Where would he turn for excuses?
During boom times they buy up endless amounts of residential real estate and force prices to artificially inflated levels. Speculators buy from speculators and sell to other speculators. Prices spiral ever-higher. The speculators harvest money while producing nothing. Families who want housing for such unimaginative purposes as living in it, are priced out. That is what the complaint was in the housing market during most of the past few years, was it not?
The crash that follows is inevitable because housing prices are supported by neither value nor utility. When the turndown comes, the speculators, having no reason to keep the property they bought solely for appreciation, all run for the doors at the same time to unload their now-declining-in-price properties. There is an immediate glut on the market and prices plummet. Real homeowners now get stuck with houses worth less than what they owe on them. They are faced with either being unable to sell or taking a huge loss if they do.
These disastrous fluctuations achieve exactly the opposite of what a free market governed by supply-and-demand is supposed to achieve. Instead of supplying a life necessity at a price corresponding to people's demand for housing and industry's ability to supply it, it penalizes and endangers home buyers and home sellers, precisely those whom it is supposed to serve.
Speculation so distorts the market that we find economic waste and absurdity such as one-fourth of the housing in Phoenix standing empty.
The reason for the distortion and instability is not hard to find. The government has given favored tax treatment to homeowners and made our mortgage interest deductible. Congress did that because it is a generally shared view that home ownership is to be encouraged. That a large number of Americans should own their own homes is generally agreed to be in the public interest.
However the homeowners interest deduction has been extended to speculators. What public interest is served by encouraging speculation and speculators? Speculation in housing is about as much in the public interest as selling cigarettes in schools.
If the government can intervene in the housing market with a tax policy to encourage home ownership, it can intervene with a tax policy to make speculation unprofitable.
It would be as simple as eliminating deductibility of mortgage interest for more than one residence. Which is what the law actually was until a few years ago when the speculators bribed the Republicans under Reagan to change it. (Campaign contributions aren't bribes? Dream on.)
It isn't just the president who is up for election this fall. Every congressman and every third senator is up for election as well. McCain has already said that the Republican policy will be more of the same. It is time to turn the rascals out.
In the meantime, if you meet one of Francine's "investors", spit on his shoes.