Re: Was cheap credit a substitute for real income growth?
Question: Was cheap credit a substitute for real income growth?
Thomas Cooley: Well, there's no doubt that that's an issue. There was a lot of cheap credit, and in the same period real incomes did not increase as much as we would have expected or liked in that economic expansion. But cheap credit is not a bad thing, you know, In fact, it's a good thing if it permits more people to–– gives them access to the prospect of owning their own home. So home ownership did expand in that period, and that's not a bad thing, as long as people take on debts that they can afford. The problem was that they were often put into mortgages that they couldn't afford, that had low teaser rates that were going to reset and that was more the problem, the fault of the mortgage lenders and the borrowers to not really understand what they were getting into.
Thomas Cooley: Well, I think borrowers could have gotten better advice about what they could have afforded and they could have had a little bit better perspective about what happens to housing prices over time.
The coincidence is hard to overlook, says Cooley.
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A NASA astronomer explains how astronauts dispose of their, uh, dark matter.
- When nature calls in micro-gravity, astronauts must answer. Space agencies have developed suction-based toilets – with a camera built in to ensure all the waste is contained before "flushing".
- Yes, there have been floaters in space. The early days of space exploration were a learning curve!
- Amazingly, you don't need gravity to digest food. Peristalsis, the process by which your throat and intestines squeeze themselves, actually moves food and water through your digestive system without gravity at all.
Carl Sagan liked to smoke weed. His essay on why is fascinating.
- Carl Sagan was a life long marijuana user and closeted advocate of legalization.
- He once wrote an anonymous essay on the effects it had on his life and why he felt it should be legalized.
- His insights will be vital as many societies begin to legalize marijuana.
A growing body of research shows promising signs that the keto diet might be able to improve mental health.
- The keto diet is known to be an effective tool for weight loss, however its effects on mental health remain largely unclear.
- Recent studies suggests that the keto diet might be an effective tool for treating depression, and clearing up so-called "brain fog," though scientists caution more research is necessary before it can be recommended as a treatment.
- Any experiments with the keto diet are best done in conjunction with a doctor, considering some people face problems when transitioning to the low-carb diet.
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