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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Elroy Jetson who wrote (91032)10/2/2007 1:52:10 AM
From: RJA_Read Replies (1) of 306849
 
Very nice, but does not solve the problem I alluded to, namely:

Very little or no growth. Of course you could institute population control, and have no necessity for new jobs, etc. But for now, the economy needs to expand to keep folks happy.

>>Deflation is a problem -- because when a business borrows, it has to pay back in money worth more than it borrowed. Add that to the interest... and this removes much incentive to borrow or invest in working business.

>>In that case, its easier to sit on your money and watch its value increase. Fine if you have lots, but for everyone else, IMHO depression... caused by lack of flexible money supply.
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