"Jim, they're dying." "Let them die."

James T. Kirk and Leonard McCoy were referring to Klingons, but the same conversation applies to housing prices. Here is a link to Tyler Cowen's post on his blog, Marginal Revolution: http://www.marginalrevolution.com/marginalrevolution/2010/09/should-we-let-housing-prices-fall.html

Also, the President just proposed that businesses be able to write off all business investment for the next year. Is this a good idea? Will it stimulate the economy? I think it's a fantastic idea, and so does Greg Mankiw: http://gregmankiw.blogspot.com/2010/09/small-step-in-right-direction.html

The question I have is whether the banks who are holding cash will have any extra incentive to loan it out? Has the Federal Reserve stopped paying interest on bank reserves yet? If not, then most banks would probably prefer guaranteed money from the Fed over risky money from loan interest.