Very amusing, let's label Joy an economic activity. Animal spirits and behavioral economics anyone, where is the GDP in getting America to set their alarm clocks, is that next?

On a more serious note, to really dig into the NIPA is a long term study and as it was, I did quite a bit of digging to write this article, but by no means is this written in stone or complete, for the details are still missing, not fully understood.

I imagine we will soon have all sorts of white papers, analysis from Academia on these new additions, or I would hope so, for counting corporate offshore outsourcing activities as U.S. domestic economic activity is just a slap in the face, never mind wrong but sorting out the methods on R&D is research.

just to clarify, a "foreclosure sale" is a euphemism for a home seizure; it's an auction where nothing is actually sold, the title is simply transferred to the bank's REO inventory..

Now if only I could pay my bills with these imaginary new dollars or income, but the same old rules apply to me. The folks in charge are desperate to continue the Ponzi, lies, fraud, globalization, outsourcing, political scams, corruption, whatever, they will resort to anything. it's obvious to anyone now that cares. What's that? A 9 year old made a rug or soccer ball overseas that an American bought at some point in the American's life? And the product was made using a needle that was at some point transported on a tire made in the US? Great, chalk it up to US GNP. Let's say the tire and labor and soccer ball are worth $1,000,000 to the US because why even bother with reality or logic anymore. And because the American got some use and joy out of the soccer ball or rug, let's say that "joy" is worth $5,000,000 because it sounds good. Whatever happens, never, never, never revise false stats down (unless it's inflation and unemployment) and never say things are getting worse for American citizens. That simply won't do. Full speed ahead, let's see if we can break that iceberg in two, we're the Titanic after all, and we can't sink!

in a "foreclosure cluster", how interesting, as in timing is everything and shadow inventory.

We have the executive class and even on six figure salaries people barely making rent in Silicon valley. Now you know why they demand so many foreign guest workers. They are the ones unaware they will be having to live 4 to an apartment to survive economically in the region.

Is that pathetic? Salaries that most of America think are the American dream not covering rent, never mind the idea of owning a home is long gone in that area.

Their little threat reminds me of Cleavon Little when he held himself hostage in Blazing Saddles. And When he was successful his parting line was "--and they are so dumb!"

And if the FHFA and their silliness has any sway here, perhaps they (the town) are.

Instead the FHFA needs to bugger off, the homes will be taken and resold. Prices will decrease, private money will see the value, and the homeowners will be free of the Ponzi scheme our country is continuing to fund to the tune of $85 billion a month, to keep the assets of the wealthy inflated, on the backs of hungry kids, bridges that are breaking, and a trillion dollars in students loans that will wind up being paid to the thieving bankers by taxpayers. In yet another bailout.

This is one part of Obama's proposal that makes a hell of a lot of sense. Of course it eats into the profits of the banks, refusing refinance because the home is underwater. Tisk, tisk, protect those bank profits at all costs, even though the banks ruined millions of people's lives by foreclosure and then sold the properties for pennies on the dollar (which they can use for additional reimbursements, fees and tax purposes).

The rule is the banks will always get carte blanche and the America people the shaft.

I doubt the law has changed but about 7 years ago, if the spouse went into a nursing home, they could seize all assets, then declare that spouse bankrupt and get Medicaid in addition to Medicare.

This put the perfectly healthy spouse into poverty for they seized their assets to "pay for" the nursing home.

Add to that the "body farm" approach these nursing homes and "long term care" facilities have, controlling people with dangerous drugs which have torteous side effects and it makes me think anyone aging to make sure they have a cyanide capsule available, just as spies and military did in order to avoid torture and a worse death by the enemy.

Glad you wrote about this, it's one of the most horrific things going on in America and in spite of outrages coming to light, nothing every changes, no doubt in part due to Big Pharma lobbying.

We lived through exactcly what Obama is proposing once, when the thieving banks had control, and they destroyed the economy and brought tragedy to tens of millions of people. The only place you could buy a home was from them, and then only under onerous terms of 1/2 down and the balance within 5 years. FDR created what became Fannie Mae, and for the next 40 years or so that institution became the bank of the people. By providing one of the major vehicles of middle-class savings when the banks walked away from us, it helped the middle-class of this country escape poverty and create wealth that is never possible when one can't own property. It brought them self-respect, and took them out from under the boot heel of the landlord

Around 2000 the largest banks saw their chance again, and, betraying the trust we had given them began to wring that profit from the lives of tens of millions of American families, leaving a wake of tragedy that we are still living with today, that may yet bring this great country a financial ruin that few are prepared to deal with.

And now Obama wants to hand them the keys to the kingdom. Again.

In 1548 Étienne De La Boétie wrote a document entitled "The Discourse on Voluntary Servitude" in which he observed that, because there were so many people, the tyrant only had the power the people gave up. Contrary to those who use what Congressman Allen West calls their "Weapons of Mass Distraction", the government is not the embodiment of the tyrant today. They are just water carriers for the real tyrants, the largest banks and the greediest and grasping of corporations. They have no wealth you didn't give them, and they have no power except that which you will not vote to keep.

But they will have your home, your future, and your servitude if Obama, instead of reforming and returning Fannie Mae to the reason it was created, shackles us and returns us to the bankers.

The tyrants will only have power if we give it to them.

Thank you for the article, and your work, Robert. It's important.