I beleive that we’ll be facing 2 parallel problems in the next 10 years.
1. The crash of real estate. Millions of people will see their wealth evaporate.
2. The ever escalating cost the war on Iraq. The war boosted the economy in the short term but we’ll have to pay for it somehow.
These two problems will bring back the bad-old-days we had in the late 1970’s and 1980’s in the aftermath of the Vietnam War.
I don’t beleive that Fed can do much to fix these problems.
