Danielle DiMartino Booth on RT's Boom Bust

CampeadorCampeador Posts: 221 Bronze ✭✭✭
She is at 11 min in the show.


  • IrishGuyIrishGuy Posts: 181 Bronze ✭✭✭
    Interesting slant on it.
    She sounds believable but I think Peter Schiff has it right that rebuilding what was already there is not productive for the economy.
    If I bought a new car, and now have to buy another one because of water damage etc., while it is good for the car industry that Capitol I am now spending on replacing something eliminates my ability to do something productive with the Capitol. Extension to the house, install a swimming pool etc which would add value to my house.
    This assumes I have the money to replace the car.
    Going further into debt for replacing something that existed has me paying interest and removing my spending ability going into the future.
    I also see this as inflationary as limited resources are consumed to replace what was lost. Demand is immediate driving up prices.
  • IrishGuyIrishGuy Posts: 181 Bronze ✭✭✭
    Another similar view.
    Read the blog but it essentially goes if you owe 200k on the house and damage is 50K which you need a loan for, you now owe 250K but if the house is not worth that you may just hand the keys to the bank like they did when Katrina happened and let them repair/ demolish it.
    Cannot be good for the economy.

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