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

To: neolib who wrote (172940)	12/21/2008 9:55:38 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 306849

>>Greenspan himself worried about all the hot money chasing investments when he opined late in Clinton's last term about how federal budget surpluses would impact the investment climate.<< the clinton surplus is a myth. national debt expanded each and every year clinton was in office. by DEFINITION, that isn't a surplus. alan could have increased requirements on margined money, but failed to do so. talk is cheap. he failed to enter into his tool box. >>As you said, "stupid money" but the problem is that all this paper, liquid wealth needs to be put to work somewhere,<< how about to pay down the national debt? oh, that's right, we've never even paid enough for our annual services. how about reduce the budget deficit? this wasn't about "trickle down, it was about all about collecting a windfall." >>and as the ratio of that wealth to what is needed to finance reasonable economic conditions increases,<< that's just it, the money wasn't going to invest in productive capacity as there was already enough capacity. it was a plain old Bushevic windfall given to the uber rich... or as bush called them, "the haves and have mores." >>what is to be expected of the excess, other than to create bubbles? That is until the excess goes poof when too much of it is tapped due to demographics or other factors.<< credit should have been more expensive. leverage regulations should have been 1. sane and 2. enforced when they did exist. >>Anybody know of a source for data which would show US "wealth" by asset class vs time? What I'd like to see is total wealth vs corporate hard asset value (value of buildings, machinery, inventory, etc, but stripped of cash, securities, and intangibles like goodwill, IP, etc). My guess is that the ratio of these two has grown significantly over the last century, but perhaps I'm incorrect.<< i would agree that ratio was high at the top of the bubble. it is much lower now, though, as wealth has been destroyed in a massive way.