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

To: stockman_scott who wrote (189525)	3/9/2009 2:09:02 AM
From: SeaViewer	Respond to of 306849

The money in the stimulus plan comes from budget deficit. The deficit is projected at $1+ trillion this year. That's 10% of the GDP, well above 3% limit set by EC standard. That's very dangerous.

To: stockman_scott who wrote (189525)	3/9/2009 2:31:34 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 306849

Maybe you are a surgeon, maybe another poster is. But there is one thing which all the bailout talk does not consider: Assume you have cancer. A slowly growing thick benign cancer. Even if it is not deadly it siphons off a lot of energy from the healthy body and draws on essential resources thus impairing your stamina. What are you going to do? Have a surgeon prune the cancer and the strain on your organism removed? Or learn to live with the cancer? Or have administered nutritionals and minerals to replace lost resources at the expense that also the cancer grows bigger? Correct. Now, a benign cancer turns into a malign cancer, infesting many other organs. Doctors would prescribe more thorough surgeries or chemo. Are you still going to do hug and feed the cancer? This is what happens now. Healthy industries and communities are infested and polluted with moral hazard (thanks to bailouts) and rank speculation (mostly in corporate credit markets). Yes, there are cancerous spots: overbuilt homes; excess capacity in the carmaking industry, excessive leverage in banking&insurance. But feeding those spots will ultimately kill the patient what used to be the U.S. economy. The patient which was not terminally ill, is cured to death because of continued wrong advice by our self proclaimed doctors of economy. A leaner and meaner America would have worked. Not an obese and cancer infested economy.