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

To: Jim McMannis who wrote (258997)	7/7/2010 1:23:11 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

The down-side of perpetual Japan-like stimulus is at best you are replacing private debt, which can be easily liquidated through bankruptcy and foreclosure, with government debt which cannot be easily liquidated. Worse still is the actual situation in Japan where they have maintained private and business debt at record levels, at the expense of increasing their government debt to triple the debt-to-GDP ratio that our government owes. Japan is effectively insolvent. I'd hate to see us pursue this "cure". It treats a case of pneumonia with crucifixion. .