The monetary analysis of the housing bubble focuses on the impact of low â?? even negative â?? real rates of interest on housing demand. That theory suggests the Fed must be inflating new bubbles with its continued policy of a near-zero federal funds rate. Skeptics ask where are the bubbles?
In todayâ??s Wall Street Journal Business World column, Holman Jenkins answers with â??Plane Crazy.â? He specifically points to the recently announced deal in which debt-burdened and unprofitable American Airlines will take delivery of 460 new planes. How did American pull this off?
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