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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Ali Chen who wrote (17336)	2/15/2004 12:01:48 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

The government and Fed do try to stabilize the economy - that's the problem. As the late Harvard Economist Joseph Schumpeter (1883-1950) said, "Policy does not allow a choice between depression and no depression, but between depression now and a worse depression later." "Inflation pushed far enough [would] undoubtedly turn depression into the sham prosperity so familiar from European postwar (WW-I) experience, [and]... would, in the end, lead to a collapse worse than the one it was called in to remedy." "Recovery is sound only if it does come of itself. For any revival which is merely due to artificial stimulus leaves part of the work of depressions undone and adds, to an undigested remnant of maladjustment, new maladjustment of its own which has to be liquidated in turn, thus threatening business with another [worse] crisis ahead" Meditate on this quote as you think about our economy and the policy actions that have been made over the past twenty years. Or even worse, the policy actions the Fed and government are proposing to take in the near future. Many people never liked Schumpeter because he would never suggest a magic solution other than letting the market take it's natural course. The current schools of "free market economists" believe the "free market" requires their constant intervention and attention. Milton Friedman and his Monetarist monkeys claim you can fix the problem with more money supply and low interest rates. You can just hear Schumpeter laughing himself sick.

To: Ali Chen who wrote (17336)	2/16/2004 4:37:15 AM
From: Amy J	Respond to of 306849

Hi Ali, RE: "That sounds strange - I was under impression that government tries to stabilize economics, not to shake the boat... " Me too. But I guess we're both wrong. My guess is AG is feeding his deficit indirectly through the real estate boom. Our deficit is like a person on drugs - they can't seem to stop their fix. Like Duke of URL said, AG's feeding of a real estate asset bubble, gives the appearances of encouraging money to be taken out of the stock market and placed into real estate. Any Economists on the thread want to wager a guess what the USA economy will be like in say 5 years? Inflation? That should get rid of everyone's debt, savers be punished. Regards, Amy J