[quote=AN]DOW to 5K will mean recession worse than what we saw recently. Which means we’ll see housing price < than what we saw this last bottom and unemployment >10%. Yeah, that’ll be fun.[/quote]
Not fun, but entirely possible, IMHO. This is why the reflation of the credit bubble was such a bad idea. They encouraged even more speculation, which was the problem in the first place.
Should have let things settle back to normal after 2008, save for some real jobs programs, infrastructure, and energy-related spending. We were almost there, but then they goosed everything back to bubble levels again. Now, we have even more debt than we would have if they had let things fall, and we are in an even weaker position because people have been dealing with declining wages and using up their savings for so many years. Best to get bad things over with quickly instead of prolonging them for years or decades.
IMHO, we are going to be in a deep recession by 2016/2017.
