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Politics : American Presidential Politics and foreign affairs

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To: TimF who wrote (31276)	1/9/2009 8:26:29 PM
From: DuckTapeSunroof	Read Replies (1) of 71588

Re: " If your going to add in the recent negative growth, than you can't reasonably also subtract the "temporary" part from the previous positive growth, but you did." No, not exactly. Mortgage Equity Withdrawals (MEWs) was what people did during the bubble in home valuations --- they took money out of America's housing stocks at a massive and historically unprecedented rate. But the OPPOSITE of "taking money out" of the housing stock would be: "putting more money INTO" the housing stock. Which --- although it may begin happening at some point when prices become low enough --- NEITHER YOU NOR I have made any claim that that is happening now. So... I don't know what you mean by saying "add in the recent negative growth". Negative growth rates are negative growth rates, regardless. (All that the previous chart was illustrating was the truly historic magnitude of the amount of money that Americans were pulling out of their homes during the recent Bush terms... and how that money was then SPENT, thus pumping up the growth numbers for the American economy. But that was not a sustainable input, like productivity growth, or investments into capital stock might be.)

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