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

To: koan who wrote (202651)	5/16/2009 3:54:49 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

The debt destruction of the 1930s, by bankruptcy and foreclosure, did not require any stimulus program to facilitate. Yes, personal and business debt declined rapidly as people lost their homes to foreclosure and businesses filed for bankruptcy. You can lose all of your debt in foreclosure and bankruptcy without ever holding a job with the WPA or receiving a single stimulus check. My Grandparents bought a home for $500 in 1934, which a person like you bought for $5,200 in 1928. His debt was wiped-out when the bank foreclosed on him. That's how it worked. Perhaps after losing his home the government gave him a tent to live in while he maintained hiking trails in Yosemite - that's a stimulus program. Stimulus programs keep people from starving, they don't create prosperity. As even a blind person can see from the chart that governmental stimulus spending increased governmental debt, it did not reduce it. While the end of these programs and the growth of the economy after WW-II made this debt bearable, the stimulus spending of the 1930s was not responsible for the economic growth of 1945 to 1980. In your own way, you're as ignorant as a Reagan worshiper. Both you and Reagan followers believe that incurring debt has supernatural powers to make life better. It merely creates a problem. .