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

To: saveslivesbyday who wrote (287959)	10/31/2010 6:44:55 AM
From: saveslivesbyday	Read Replies (2) \| Respond to of 306849

The sound bites coming from Washington suggest that there is still a debate as to whether Reaganomics has worked. This bodes poorly for a constructive dialogue, as the underlying assumptions of each side are so far apart that any discussion of policy action cannot get past theses biases Taking the 4 elements, 1. Reduce government spending, 2. Reduce income and capital gains marginal tax rates, 3. Reduce government regulation, 4. Control the money supply to reduce inflation. It seems to me that 1 and 2 were effective, but 3 and 4 were misguided forces that ultimately led to financial deregulation and too much power/trust in the Fed to steer the economy in the right direction. The Residential Real Estate Bubble/Collapse was just the "icing" on the cake which was the culmination of a massive debt bubble fueled by deregulation and artificially low interest rates, along with decoupling the money supply from the gold standard for good in 1971, despite 2000 years of effectiveness en.wikipedia.org Financial markets left unregulated are like a jungle - greed and corruption will unfortunately prevail unless the system is regulated. And the concept of regulating themselves? Ha ha! look where we are now. So the most recent "experiment" is really only 30-40 years old, and has led to a situation where only 5% of the world's "wealth" is based on true hard assets, the other 95% is based on credit/debt, Simply put, our current financial system is an unsustainable credit bubble based on a Ponzi scheme

To: saveslivesbyday who wrote (287959)	10/31/2010 10:10:23 AM
From: bentway	Respond to of 306849

There's a new book out, just in time for Halloween, that details the failed economic ideas that have led us to where we are now. Although it seems everyone is blaming Obama, can we REALLY pin 40 years of bad economics, promoted mostly by Republicans, on HIM? amazon.com He's just the janitor. Attempting to deal with the after-party mess and destruction, while we hung-over partiers berate and curse him. The most frightening thing is, these ideas still LIVE, and still have (R) champions!