Catherine: We Need Rising Incomes

On 6/5/11 12:38 pm a reader wrote:

Dear Catherine,

I’m a long-time follower of your views….

I’m a self-employed trader/investor who is retired from a +25 year career as an independent trucker. I regularly read Shah Gilani’s essays and would like to know your opinion on his solutions to our national housing problem. Your experience at HUD would allow you to give a unique take on his proposed solutions which involve federal government programs.

I have attached the link to his June 3, 2011 essay for you. For me, it would be an educational boost to hear your response.

Link: How to Fix the U.S. Housing Market

Peace,

On 6/6/11 7:13 am Catherine responded:

The problem is that people need income. If they do not have income, you can re-engineer the housing market all day long and it will do no good.

Step #1 is to STOP draining the equity out of people, households and small business.

There are a lot of steps after that, but no sense talking about them till you are willing to stare #1 in the face.

If we keep draining the equity, perhaps that is a signal as to to where the system REALLY is going.

Best,

Catherine