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

To: SouthFloridaGuy who wrote (28932)3/30/2005 3:56:26 PM
From: Elroy JetsonRead Replies (1) | Respond to of 306849
 
I think you'll discover that followers of the monetarist cult believe de-leveraging and recessions are abnormal and are no longer necessary.

They have replaced "supply and demand" with high-speed printing presses which "supply the demand" thus freeing the economy from barbarous relics like market constraints. Their system also eliminates the need for savings, aka deferred consumption, since capital can now be printed - or so they believe.

In spite of the fact that total debt in the US economy is currently more than 350% of annual gross income, they believe further "efficiencies" will be achieved as debt is increased to 2,600% of annual income. For a monetarist, debt is seen as an "efficiency" which can be created in infinite abundance without any practical limit.

While we find these views comical, monetarists are more than willing to destroy the US economy in an effort to prove their validity of their long discredited "system" - as they fix the problems caused by excessive credit creation with even more credit creation.
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To: SouthFloridaGuy who wrote (28932)3/30/2005 4:02:03 PM
From: patron_anejo_por_favorRespond to of 306849
 
Well said....the boomers are FAR different from their parents at this stage of their lives with respect to debt and personal balance sheet issues....it's gonna be a rocky road to retirement for most.<NG>



To: SouthFloridaGuy who wrote (28932)3/31/2005 4:11:30 PM
From: GraceZRead Replies (4) | Respond to of 306849
 
With regard to the Japanese, well we know what happened there.

Yes, we do. Houses fell seriously in price off their peak and people continued to live in their houses and pay down their mortgages. I think most here will be surprised at how many here will do the same thing when the price of their house declines.


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