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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: tejek who wrote (260410)7/13/2010 4:28:24 PM
From: Skeeter BugRead Replies (1) of 306849
 
lending is contracting for the economy as a whole - and that includes $1.6 trillion in annual federal deficits.

businesses hoard cash because the economy sucks.

tax rates to go up significantly.

housing prices resumed down trend.

states are broke - CA to pay workers $7.25/hour.

federal government is about $5 trillion closer to going Greece, as it were.

Fed is full of $2.4 trillion in trash that will make its way to fannie and freddie.

Fed says banks have another $2.6 trillion they want to put on the Fed balance sheet (before the Fed moves it to Fannie and Freddie - the tax payer).

banks still have to mark to myth because they are still bankrupt.

but the market can continue to go up - there is a lot of hot cash out there in the hands of people who can go "all in" and then keep their winning and pass their losses off on to the tax payer.

the $1.6 trillion deficits will have to stop at some point - what happens then?
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