DW – Once again I think I need to clarify my stance. Personally I agree that recessions and possibly even depressions are good for an economy. Again my point is not to debate what is or is not good for the economy.
The thing that always seems peculiar to me is the dichotomy of points brought out here. On the one hand the prevailing opinions of this site are that this housing runup has been unprecented with any in our history. Point two, that at no other time in history have we had so much leverage, so much debt, so much corruption, and never ever have we had such a vast secondary market created by the runup in housing. Furthermore it is generally agreed that the these two factors have created a stunning amount of wealth and debt at the same time. So with all that said, shouldn’t we have the MOTHER of all recessions? Those who consistently post facts (and these are facts that I ASOLUTELY AGREE WITH and do not dispute), who do insist on, advocate, and even welcome a recession; shouldn’t that recession in which they are welcoming be a freeking tsunami?
Do you see my point now? I don’t fear a 2001 recession, I don’t fear an early 90’s recession (which by the way many on this site were probably in high school or less at that time) and I recalled the high interest rates of the 80’s all to well. Even the gas lines of the 70’s… Anyways what I fear is, what if all these bears are right on? What if it does come to roost? Would it be good in the long run? Yeah I guess… Would it be like comparing a tornado to a minor squall when comparing it to those other recessions? Absolutely.
So this is what I fear. This is what concerns me much more then anything else. That is why when someone posts be careful what you wish for, I think some of us understand the gravity of that statement much more then others.
