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

To: Jim McMannis who wrote (176926)	1/13/2009 11:27:32 PM
From: neolib	Respond to of 306849

The economy didn't go ballistic, only housing, and that was fueled as much by financial "innovation" as it was by the low fed rates. If the feds had raised rates significantly, the economy would have stifled earlier as well. The US has been consuming more than it produces for quite some time. At some point that must correct. Lots of economists claimed there was nothing wrong with trade imbalances or even sustained fiscal deficits as long as we had sustained growth. One could argue that we are looking at the results of such an experiment. There was a good Keynesian attempt at keeping the growth going as long as possible, but...