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

To: RetiredNow who wrote (261564)	7/16/2010 8:45:32 PM
From: tejek	Read Replies (2) \| Respond to of 306849

Of course, balancing the budget is the best way to deal with our crazy gov't. Will it cause economic pain? Yes. But the pain is coming either way. The only question is do you want it short, sharp, and effective, or do you want it long, agonizing, and ineffective. See, MM, that's how you stack the deck. Your reference to "crazy" gov't makes the gov't completely wrong and everything else possible. According to conservatifes, our gov't is "crazy" so we have to do something drastic to stop it from functioning. And that's straight from the GOP handbook. I grew up listening to that crap. And when I pointed out where the gov't has helped make things better, I have been told I was wrong. The gov't isn't crazy.....in fact, its far more logical and rational than many Americans [see tea baggers]. Free markets solve market excesses with certainty and leads to sustainable growth. Maybe sometimes, but not all the time. It didn't under Bush. We had poor economic, job and income growth during the Bush years and the markets couldn't have been freer. In fact, its free markets that helped get us into the current economic mess. Since Reagan instituted trickle down, the deficit, as a percent of GDP, has grown under every presidency except Clinton's. Free markets be damned! These Keynesian policies will lead to a Japan style market where stocks lose another 75% of their value over the next 20 years, and that's in the very best case scenario. Nope. Very different demographics. Japan has nearly zero population growth and a high savings rate. Both contribute to slow economic growth and it shows in their economy. The worst case scenario is that this bailout bubble will explode fantastically leading to another Weimar Republic or Zimbabwe. See.....this is a problem. I find way too often people don't really understand what's happening with our current economic malaise. The Weimar Republic suffered from hyperinflation. We are threatened with deflation. Two very different things. Declining housing prices are deflationary, not inflationary. The Weimar Republic got into trouble because the Allies demanded excessive retributions it couldn't possibly afford. In an effort to keep up, Germany got loans in the 1920s from the US and other nations. To keep up with running its government and the country, it began to print money like it was going out of style. Inflation became hyperinflation, and when the Crash hit, Germany was screwed. There is little comparison to the US and its current economic problems. We need stimulus, not deficit reduction. Democracies no longer function very well when the citizens realize that they are being played and that a lifetime's worth of savings has gone up in smoke because of WS and bankster criminals who are in collusion with their government took too much risk with our hard earned retirement money. Huh? The citizens were part of the party. All thos Americans who voted for Bush....TWICE; all those Americans who kept doing refis as the value of their property increased, all those Americans who bought well above their means, all those bankers who went along with the charade and came up with new insta loans that allowed people to buy houses who couldn't afford to buy a house, and all the Wall Streeters who came up with their clever derivatives and packaged crap and sold it off like it was gold. We had more free market than we knew what to do with. In fact, I've had enough free markets to last me the rest of my life. I didn't refi my house. I didn't live above my means. I didn't vote for Bush......not even once. But because the 'Magic Negro' ain't making things good again fast enough, I have to listen to a lot of crummy whining, some of which is coming from the very same perps who caused the problem in the first place. Sorry, if I don't feel sympathetic. It will be time to reduce the deficit when the economy is on solid footing.......and not before.