SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chas. who wrote (102232)9/20/2009 6:49:39 AM
From: Elroy Jetson7 Recommendations  Read Replies (1) of 116555
 
Of course unemployed people don't buy homes. They lose them to foreclosure.

New jobs will not be created until the excess consumer and business debt, relative to income, has been purged through bankruptcy and foreclosure. Only when the excess debt is gone will consumer and business spending lead the economy to recovery.

Those who will start new businesses or expand existing ones will not do so until real estate prices have declined fully, and consumers have eliminate their excess debt burden.

Businesses struggling with excess debt will not be able to hire new workers until that business has completed their bankruptcy filing to eliminate their debt which can no longer be paid.

Hawkmoon foolishly believes that if Comrade Stalin were resurrected and he created a bunch of make-work jobs, then America would be flush with prosperity again. But with the excess debt which created this down-turn still hanging heavily on the economy, nothing would improve.

The Australian Prime Minister estimate that governments around the world have already spent, or committed to spending, government stimulus equal to 55% of the world's income for one year, spread over a three year period. That's 18% of income per year for three years - and there's no magic miracle. In fact the current limited magic will end as soon as the spending stops - because not much of the excess debt was not eliminated. It's tough for some to swallow, but that's economics.
.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News