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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 389.75+0.5%4:00 PM EST

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To: Ilaine who wrote (36629)7/6/2008 9:49:39 AM
From: elmatador  Read Replies (1) of 218124
 
Ilaine's customers: Housing secluded crisis touches the real economy via "spiraling card debt". This is a negative feedback loop. Through which, the maladies affecting housing percolates to the real economy. That because the consumer ends up with less discretionary income.

Government noted and reacted via stimulus package. But prices of other goods subject to world market going up: namely food and energy. That means consumer will have less discretionary income even with stimulus package.

This points to sure stagnation of the economy. If economy stagnates, we will have -cummulatively-: housing deflated. Consumer won't be the engine of growth for the US economy.
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