From Amateur Economists:
The bursting of the housing bubble has not only hurt middle-class and semi-affluent Americans (who thought they were more affluent than they were!), but also the rich and famous. Everyone has heard about Ed McMahon’s troubles – his wife sharing how she’s been so degraded that she now shops at (gasp!) Target of all places – but he’s not the only one.
The article highlights the troubles of Latrell Sprewell, Evander Holyfield, Jose Canseco, Michael Jackson, and Aretha Franklin, before concluding with:
The housing bubble and its subsequent burst were caused by the Federal Reserve’s fiat-money central banking. On the one hand, people such as McMahon, Sprewell, and Franklin should be held responsible for the bad financial decisions they’ve made — just as the heads of all of the middle- and lower-income families have been. But on the other hand, whether it’s Michael Jackson or my parents (who lost their home of nearly 30 years), it must be recognized that the Federal Reserve System obfuscates and sends false signals to market participants. When politicians talk about “helping” the people under the distress of a housing market turned upside down, they cannot be taken seriously unless they first recognize the entity that causes booms and busts: The Federal Reserve.
Read the full article here.