Guest Post: Why The Government Is Desperately Trying To Inflate A New Housing Bubble

"...Many people claim the Federal government and Federal Reserve are trying to inflate a new housing bubble to trigger a new "wealth effect," i.e. people seeing their home equity rising once again will feel encouraged to borrow and blow money like they did in 2001-2008.

But if we look at current income (down) and debt levels (still high), there is little hope for a renewed wealth effect from housing. That leaves us with this conclusion:

The Federal government and Federal Reserve are trying to inflate another housing bubble to save the "too big to fail" banks from a richly deserved day of reckoning."

 

at http://www.zerohedge.com/news/2013-03-25/guest-post-why-government-desperately-trying-inflate-new-housing-bubble