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In a column about how to deal with asset bubbles, Tim Duy says:

I am sympathetic with the view that interest rates were not necessarily too low during the build up of the housing bubble. Indeed, relatively low rates of investment (equipment and software) growth suggests that real rates were actually too high. But capital flowed to housing instead of more productive investment activities because that was the path of least resistance.

But why did capital fail to flow to productive investments?  Saying that housing was the “path of least resistance” doesn’t explain anything.  In some sense, housing (or property in general) has always been the path of least resistance for investment dollars.

The real difference seems to lie not in housing becoming a better target for investment, but in real goods and services becoming less attractive ones.  Why?  Surely this is something that deserves considerably greater scrutiny than it’s gotten.  Why did investors no longer think that the returns from investing in the real world portion of the American economy looked very compelling?  Why was demand for real world goods and services not high enough to provide ample investment opportunity?  This seems like a core question of the past decade that hasn’t gotten enough attention.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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