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MzMia -> RE: Toxic/Corrosive Chinese Drywall---who is to blame/who pays? (11/24/2009 6:47:09 PM)
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quote:
ORIGINAL: AnimusRex
You see, the invisible hand of the marketplace will solve this, as it solves all of lifes' problems. Let me break it down for you:
Once the houses that have the contaminated drywall fall in price, they will be foreclosed upon;
The banks will process these toxic assets by demolishing them, writing down the losses, prompting a contraction of lending, widespread layoffs, and a few quarters of negative growth;
Thousands of families will be bankrupted, jobs will be lost; the adverse societal effects of broken families, divorces, and school dropouts will ripple through the nation;
All imports from China will be suspect; there will arise a cottage industry of private market inspectors and quality assurance firms, but since not all builders will use them, the level of risk within the building industry will add a few basis points to every construction loan, and be reflected in higher prices for houses, apartments, and offices.
Eventually society will accept that all products are at risk of toxic materials and this risk will be borne by the consumer;
The occasional explosion, where a batch of toxic materials turns up in our food, clothing, or consumer products; the occasional bout of poisonings from melamine in milk or lead in paint will be seen as just one of those things that cannot be avoided.
Consumers will react to this higher level of risk by being defensive- purchasing less, maintaining a higher level of savings to cover unexpected adverse results, depressing consumption, leading to lower economic growth permanently.
You see? Problem solved.
Thank you all for some very interesting responses.
Now this response, might have a tad of truth in it, but I really hope not.
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