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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: grusum who wrote (263976)7/26/2010 8:58:06 AM
From: neolibRead Replies (1) of 306849
 

you assume that government spending has the desired effect of stimulating the economy when there's scant evidence that it does.


LOL! So your view is that the recession we just went through would have been milder without government spending?


that notion presupposes that anyone on earth is smart enough to know where the peaks and troughs will be before they occur.


Uh? What the heck is this "before they occur". That would be nicer, but I'm happy with a noticeable lag for detection. For mild peaks & dips the lag might well be longer than the event, but so what, mild events don't benefit much from intervention. The housing bubble and this recession were quite detectable well before either was over, and thus intervention could have some benefit.

At any rate, the fastest growing (longish term) economy has a VERY interventionist government. Further they slam the control stick from one side to the other ala bang-bang control quite frequently. You might want to scratch your noggin about why such a system has cranked out 9% growth for so many years.
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