Our first guest interview is Dr. Ryan C Amacher, from the University of Texas – Arlington. Dr. Amacher is past President of the University, and is currently a Professor in the Department of Economics and Public Affairs. In today’s Wall Street Journal, Dr. Amacher and about 240 of his colleagues have endorsed an ad by the Cato Institute, directed at President Obama, calling for lower taxes and a reduction in the burden of government as a means to stimulate the economy.

Here are the questions posed to Dr. Amacher:

up2date: The original intent of the TARP program was to buy toxic mortgages. It now appears the appropriation is not being spent as intended. Is a real estate recovery dependent upon removal of these bad loans?

“Not really, what is needed is a recovering economy-that will solve the real estate problem. Now is a really good time to buy houses and rent them. If you have the money buy foreclosed homes and rent them. This takes a certain personality to do this, but it would be a good investment”

up2date: I have a theory. Back when money was readily available and when we had a mortgage for everyone mentality, people did not seem to care what they paid for a home. Now that the qualification process is so much more difficult, will we see home prices fall proportionately in line with median incomes?

“People thought prices would continue to rise so they were not worries about what they paid as long as they could get a well priced mortgage.”

up2date: Many homebuyers are still on the fence believing home prices will continue to fall. Once the market hits bottom, do you believe home price appreciation will fall back in line with inflation?

“Yes and inflation will be high. All this debt will be monetized by the Fed and we will have a period of very high inflation – maybe very high. All real assets including houses will rise, maybe a great deal.”

up2date: So many people have seen tremendous losses to their net worth. Evaporating home equity along with stock and retirement portfolios. People have become shell shocked. What must be done to get American’s investing again?

“Confidence. Whatever brings that about. Most people think that FDR’s spending programs got us out of the Great Depression. They did not. It was WWII that ended the depression. Able bodied men went to war and women went to work in the war industry factories!”

up2date: We were all led to believe that our economy was on the verge of destruction if the initial $700 Billion TARP Bailout was not approved. Have there been any benefits at all from this program and what should be the next step?

“None that I have seen. We should cut taxes and let consumers and business lead the way out of the depression. What we have going on is European style Socialism; which is really the goal of many liberal politicians.”

Thank you Dr. Amacher.

In the interest of full disclosure, the author is a University of Texas – Arlington alumni, BBA Marketing – 1981