Electoral politics makes Bad Economics

Interesting commentary from Peter Viles at LA Land:
Yet the state's economy and specific problems go undiscussed in presidential politics because its votes are already counted for the Democratic Party. If Americans really knew about the details of our wacky housing market -- median home prices above $500,000, house painters buying brand-new $375,000 homes with no money down, etc. -- they would probably be shocked.

The ideas voiced by McCain and Sheila Bair about propping up home prices sound totally insane to Californians -- we have a real bubble and prices need to go down. But in an election year, California doesn't matter because the votes are already counted.

Policy seems to shift just enough to be what people want to hear in the swing states, and not what the dollars say about 34% of stupid mortgages made (12% of the population, 34% of the mortgage dollars in California) in the last 5 years.

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