Over a month ago I stated my conviction that, in spite of the consumer’s parsimonious approach to buying in the wake of the “Great Recession,” he whould soon “shuck his sack cloth and ashes for fancy dress.” Well he did. The Christmas shopping season exceeded all expectations. Us folk in the real estate business are also happy to see home sales rising smartly.

All of this is good, but we will not get back to the lofty heights of 2007 until we once more provide credit from “securitized debt.” I don’t see many, if any, who have fully understood the quantum increase in credit we obtained from this innovative device.

This time we do need to keep better track of this investment vehicle/credit source and the Congress is closing in on a block of new regulations that will do this. Again, thanks to Barney Frank for a very comptent campaign to regulate this market.

And why do I insist on restoring securitized debt to its role of being our primary credit source? Because until this happens I do not see any real reduction in the unemployment level or, put another way, I do not see sufficient demand to induce substantial new hiring.