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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (91889)	3/5/2008 11:30:58 AM
From: MulhollandDrive	Read Replies (1) \| Respond to of 110194

My premise is members of our government after 9/11 saw the economy being in economic warfare and were determined to "keep it strong" by gunning up the economy and real estate. In the process they have brought about the damage they thought they were protecting against. Just a hunch. score another one for the terrorists then i agree with you though i remember at the time GM began the 'keep america rolling' campaign of zero interest (which was unprecedented at the time) and of course it was followed by the other auto manufacturers and retailers we had considerable discussion on another thread at the time about how this could only create a short term pop in purchasing (specifically about autos) and that basically the auto makers were front loading future sales and that has indeed happened coupled with artificially low interest rates, too low, for too long which sparked a huge bubble in RE that carries with it a ginormous debt overhang for declining assets very bad scene which makes the recession we are entering now, much different than previous business cycle contractions. it is caused by asset deflation (housing) it is NOT contained, it is widespread, it is continuing , it is DEEPENING and the only hope of preventing more wealth destruction is the stabilization and future appreciation of those assets problem is nobody knows where the 'bottom' is, though bottoms have been 'called' over and over, only to be proven incorrect the fed is helpless in this scenario, they are truly pushing on a string with the rate cuts, trashing the dollar and causing rising prices in ANYTHING traded in dollars, and oh that would be food and energy <g> i have tried many times to imagine a scenario via rate cuts and 'stimulus' packages that would avert a (needed) recession and i just don't see it