[quote=AN][quote=livinincali][quote=spdrun]
2000-1 dot.com bubble crash started under Clinton.
2007-1 property crash started under Bush.
[/quote]
2014[/quote]
Less than 4 months left.[/quote]
Only problem is nobody recognized 2000 or 2007 as the starting point until a year or two later. Most people were of the belief that it was just a another minor correction when those events started.
[quote=SK in CV] They may have screwed up early on, but the fed has been masterful the last 3 years.[/quote]
The only thing the fed is masterful of is creating asset price bubbles. During the time when those bubbles are created it feels pretty good and looks pretty good but somewhere down the road it all comes crashing down. Then we wish the fed had never created the bubble in the first place. This time around it will be the same thing. Another asset price crash. Another round of nobody saw it coming. Another day of tears because this time it was different.
[quote=livinincali]
The only thing the fed is masterful of is creating asset price bubbles. During the time when those bubbles are created it feels pretty good and looks pretty good but somewhere down the road it all comes crashing down. Then we wish the fed had never created the bubble in the first place. This time around it will be the same thing. Another asset price crash. Another round of nobody saw it coming. Another day of tears because this time it was different.[/quote]
Yes, this troubles me a lot. As all we know on this board, foreclosure is not the problem, foreclosure is the solution to years of mis-allocation of investments before that. How is that $240 billion allocated to Alibaba or $19 billion allocated to whatsapp…a good thing for our economy? Or how is that the huge speculation of real estate price around the world a good thing? Does that create sustainable economy growth or just bragging rights in the cocktail party?
I agree with “carlsbadworker” in general, but to say that joe/suzy six pack buying an inflated home is a misallocation of money is a bit harsh. Stupid, yes, but not to be looked down on, just a very valuable lesson learned I would say. What bothers me the most about our economy is that we don’t have a good economy. How long can we keep scratching each others backs before someone has to go out and hunt down some food. Yes that was a caveman reference, this is not a new problem. Our country needs to wean itself off handouts (cheap labor) and stand up for ourselves and make worthwhile products. We are being bullied by the state with too much bureaucracy.
