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

To: yard_man who wrote (252360)	6/6/2010 10:50:03 PM
From: RetiredNow	Read Replies (1) \| Respond to of 306849

I know what you are saying. However, thinking rationally, if we care about deficits, then something must change. If we were to cut spending to tax revenue levels right now, that would strip $1.7 trillion straight off the top of GDP. On a base of $14.5 trillion GDP, that would be an immediate 12% decline. The result would be an increase in at least 12% incremental unemployment and instant Great Depression II. Let's go for it. The alternative is to raise taxes and cut spending both. The Great Depression II will probably come from this path as well. There's really no avoiding it. No good choices left.