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

To: Perspective who wrote (239520)	2/26/2010 1:55:03 PM
From: neolib	Read Replies (2) \| Respond to of 306849

The thing that always strikes me in economic discussions is that the entire field does not make sufficient distinction between transient events and steadystate response. Its possible that there never is a steadystate response in economic systems. Instead, we always have time distortion, information distortion, and psych distortions having amplified effects, meanwhile economists talk about what should rationally happen long term. They are talking about the final response of a system where time (transients), misinformation and irrational behavior have all damped out, but we never have those conditions. Even when we correct previous issues, the current conditions can have similar distortions, just of opposite polarity. Its still not steadystate.

To: Perspective who wrote (239520)	2/26/2010 5:46:36 PM
From: Skeeter Bug	Respond to of 306849

>>I would add that the credit bubble is a very global phenomenon, and it's another part of why the Fed can't succeed.<< the operative question is... succeed at what? saving the world's economy? i argue they succeeded in destroying it - on purpose. there is no other explanation for this chart... market-ticker.denninger.net isn't the fed mandate to make sure credit aggregates stay in line with GDP instead of go parabolic against GDP? just askin'. all the fed is trying to succeed at is serving the interests of its of its private banker owners and fooling the masses so they don't revolt during the process. i'd say they have succeeded in their missions well beyond any reasonable expectation. the problem is when people think that mission includes saving anyone else. looters need someone to loot. that would be us.