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To: Suma who wrote (71503)	1/21/2009 12:33:45 PM
From: Dale Baker	Respond to of 118717

We live in a highly interconnected global economy and financial system, which was allowed to take on far too much risk. Now we are paying the price for losses throughout that system all hitting at once. It will take a long time to rebuild confidence and stability.

To: Suma who wrote (71503)	1/21/2009 1:54:43 PM
From: Keith Feral	Read Replies (2) \| Respond to of 118717

The world is falling back from the decade of inflation and price gouging by some of our beloved leaders in banking and energy. Not a damned thing we can do except sit back and enjoy the lower energy costs and wonder why we can't lower our mortgage rates. Think about it, consumers stopped spending money in 2006 as they all became house poor. Then, the utility companies started increasing the rates for heating and electric. They were all talking about this incredible need for more coal plants. Now, the utility companies are getting crushed because they have lost so many customers. Don't forget about those big adjustments they made to property taxes as our housing prices were going up. They hit us with every conceivable notion of inflation. I'm not even going to rant about health insurance costs. But, to put it all in perspective, the consumer was savagely ripped off by everyone of the companies to which we pay our bills - mortgages, property taxes, utility, insurance, groceries, and gasoline. People are returning to their common senses. People that can't afford the house of inflation pain are walking out and moving into decent apartments. No property taxes, no mortgages, no homeowners dues, no insurance. All of a sudden, they have more money to spend. It might be more noticable if it weren't for all of the job losses. Homes are supposed to be nice little places where people raise their families, not to support the national economy and every blood sucking inflationist on the face of the planet. The economy doesn't have enough velocity because too much disposable income was tied up in housing. Then, the market tapped out and all the capital and resources shifted to the next game, peak oil. All we have to do is look at the inflation bubbles and know that the economy is better off without $300,000 McMansions and $150 oil. Obama would be my friggin hero if he brought in enough resources to end the healthcare bubble. However, the inflationists controlling the medical market are very difficult to beat. We aren't training enough doctors in this country to bring down prices. At the same time, doctors aren't seeing enough patients because they don't have medical insurance. I suspect Obama will try to fix the insurance problem, which would have my full support. Private insurance has turned into a national disgrace, since they turn down so many requests for insurance. I'm a big fan of capitalism, but not inflation. Inflation is the basic problem that gets us into problems in every economic cycle. Hell, this crash in housing prices is the single best thing to happen to this country. We should feel damn near blessed that MTMarket put an end to the housing boom. It would be nice if they offset the accounting impact on the banks so they could spread out the losses over the first 10 years of the accounting changes. I think the FED needs to shift gears and use FED policy to target mortgage rates. Guess that's why they took rates to zero. There is probably still too much inflation left in the system for things to function properly, especially in the commercial real estate sector. However, reit's will continue to thrive through the institutionalization of real estate over the past decade. Soon, people will be back to enjoying life without any regard for the market. All of our futures would have been in utter ruin if the inflation game was not brought down to it's knees. We wouldn't have the money to drive our car from the house with 9% mortgage rates to the gas station to fill up our tanks at $5 a gallon. I will never feel sorry for a single one of these companies if they fall apart. It's suprising they all made it this far. Circuit City should have closed years ago. Why don't they put a Family Dollar grocery store in all the abandoned stores? We need food more than we need another place to buy cheap electronics.