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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (276611)	10/25/2008 1:07:17 PM
From: skinowski	2 Recommendations Read Replies (2) \| Respond to of 793868

But you should take that economic forecast, like all others, with more than a single grain of salt. This is an honest and serious statement. Economists were unable to predict events in the 30's, and this time will not be different. downward spiral of housing prices, further defaults and additional losses at financial institutions We had a great housing boom, in many parts of the country it was a mania, and - naturally - prices must come down. Prices are still high as measured by the Average house price to the Average family income ratio. Young couples cannot afford to buy houses - how good is that? Why not allow prices to go down and find a bottom? From that point, the only way for prices to go will be - up. And banks should be prudent - or go out of business. As they do so, healthier banks will buy their assets for pennies on the dollar, the way it should be.