First of all, the whole idea is ass backwards. The economy is supposed to drive the housing market not the other way around. The Fed has everybody believing nonsense by taking trillions of dollars away from the productive economy and putting into the blackhole of Wall Street. They are either insane or have ulterior motives.
Second, the notion to jam credit down everbody’s throat is ridiculous and exposes the absurdity of the structure of our economy. The last thing the general public needs is more debt. They need less debt and a pay raise.
Sure, there is cash waiting on the sidelines getting ready to pull the trigger, because people think prices can fall no more, but they are dead wrong, and their necks are now ripe for strangulation.
We are now in a depression and it aint your grandma’s. This will be apparent by Feb with the exception of the most delusional.
U.S. companies slashed payrolls last month at the fastest pace in 34 years as the economy headed for its deepest and longest recession since World War II.
Employers cut 533,000 jobs, bringing losses so far this year to 1.91 million, the Labor Department said today in Washington. November’s drop exceeded all 73 forecasts in a Bloomberg News survey.
The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.
In their annual report on the world economy published on Monday, the economists said the dollar’s sharp rebound this autumn had been driven mainly by a flight to the safety of the international reserve currency as the financial crisis spread beyond the US.
The overall trend remained a downward one, however, reflecting perceptions that the US debt position was approaching unsustainable levels. An accelerated fall of the dollar could bring new turmoil to financial markets.
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The report recommends reform of the international reserve system away from almost exclusive reliance on the dollar and towards a globally backed multi-currency system.
