An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
This speaks to the point that Mike Sankowski made years ago that Real Estate lending is THE lever for monetary policy. Well over 70% of bank lending was either mortgage or commercial property related at the time he made that observation I believe. It may have been even more.
As long as we see monetary policy as our macro management tool this is what we are stuck with.
But lets face it there is a whole lot more to the economy than houses and cars....
Its monetarist to think of the economy as houses and cars because its based on "bank money!" type view which is monetarist... iow they look for "where is the money being created?" as their basic view of "where the action is"... its monetarist...
some cell phone plans have become like car payments... then there is health insurance payments... fuel payments to put in the cars... energy bills for HVAC in the houses... local tax bills on the houses... food....
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BTW have you seen this tweet by E Lonergan:
https://mobile.twitter.com/ericlonners/status/775957573128318976
"Really? Fiscal policy is a shining example of democratic process? Not in Europe. Anywhere?"
This speaks to the point that Mike Sankowski made years ago that Real Estate lending is THE lever for monetary policy. Well over 70% of bank lending was either mortgage or commercial property related at the time he made that observation I believe. It may have been even more.
As long as we see monetary policy as our macro management tool this is what we are stuck with.
Greg the rest is cars...
But lets face it there is a whole lot more to the economy than houses and cars....
Its monetarist to think of the economy as houses and cars because its based on "bank money!" type view which is monetarist... iow they look for "where is the money being created?" as their basic view of "where the action is"... its monetarist...
some cell phone plans have become like car payments... then there is health insurance payments... fuel payments to put in the cars... energy bills for HVAC in the houses... local tax bills on the houses... food....
There is a lot more to it...
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