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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Skeeter Bug who wrote (233922)12/22/2009 8:46:26 AM
From: MulhollandDriveRead Replies (1) of 306849
 
also of note is that an ever increasing requirement for debt is an exponential function. exponential functions ar enot sustainable - hence the system eventual broke down and is currently in the process of breaking down.

market-ticker.denninger.net

note the flat part at the top of the curve - THAT IS WHAT SCARES THE H*LL OUT OF BERNANKE, GEITHNER AND OBAMA.

if debt declines, the financial WMD that is debt based money literally IMPLODES.


SB....don't forget a rolling loan carries no loss..

this is the game bernanke is playing....

it's called 'kick the can'

obama is pissed because 'banks aren't lending'

(here's a hint BO...not only are they not lending, borrowers aren't borrowing)

the entire focus of washington/the fed is that DEBT creation equals WEALTH....

it does not...

it can POTENTIALLY, for example borrowing to build commercial RE in an expanding economy that yields not only price appreciation, but also free cash flow....

we are not living in that environment today....we have excess capacity on nearly every level of consumption

but debt creation is the only page in the fed's playbook to keep the 'expansion' moving

ben:

horse, meet water, now DRINK

horse to ben:

youtube.com
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