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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: nextrade! who wrote (196831)4/18/2009 3:24:31 PM
From: arun gera of 306849
 
>Let's remember a few simple points in all this:

Stimulating Demand (consumption) is EASY.
Creating Supply (production) is very, VERY HARD.>

In affluent societies with an excess supply of goods, it is the reverse. Creating demand is tough, that is why companies have to spend 30 percent of their budgets on sales and marketing.

Creating supply is easier, as you can just pay other countries in printed dollars, and outsource the production. This cheap supply sources of goods have overwhelmed the natural demand. The resulting dollars overseas, also increase the supply of dollars available to lend at cheap rates, again overwhelming the real debt servicing capacity of US citizens.

-Arun
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