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March 7, 2008 at 8:39 AM #12018March 7, 2008 at 9:10 AM #165477nostradamusParticipant
Over here in the US of A, we’re being screwed twice:
1. By dropping rates the dollar is devaluated causing an inflationary recession.
2. With threats of bailouts they are keeping home prices artificially high, thereby reducing further the things we can afford (mainly, a home) which compounds the affects of the recession.
March 7, 2008 at 9:10 AM #165793nostradamusParticipantOver here in the US of A, we’re being screwed twice:
1. By dropping rates the dollar is devaluated causing an inflationary recession.
2. With threats of bailouts they are keeping home prices artificially high, thereby reducing further the things we can afford (mainly, a home) which compounds the affects of the recession.
March 7, 2008 at 9:10 AM #165800nostradamusParticipantOver here in the US of A, we’re being screwed twice:
1. By dropping rates the dollar is devaluated causing an inflationary recession.
2. With threats of bailouts they are keeping home prices artificially high, thereby reducing further the things we can afford (mainly, a home) which compounds the affects of the recession.
March 7, 2008 at 9:10 AM #165804nostradamusParticipantOver here in the US of A, we’re being screwed twice:
1. By dropping rates the dollar is devaluated causing an inflationary recession.
2. With threats of bailouts they are keeping home prices artificially high, thereby reducing further the things we can afford (mainly, a home) which compounds the affects of the recession.
March 7, 2008 at 9:10 AM #165892nostradamusParticipantOver here in the US of A, we’re being screwed twice:
1. By dropping rates the dollar is devaluated causing an inflationary recession.
2. With threats of bailouts they are keeping home prices artificially high, thereby reducing further the things we can afford (mainly, a home) which compounds the affects of the recession.
March 7, 2008 at 5:08 PM #166094gold_dredger_phdParticipantLooks like the Keynesian wet dream is just not going to come true. Labor or normal people need more money or an increase in income if they are going to increase their spending.
It’s really disgusting how the government and business try to encourage people in the country to take on more debt. First by keeping the interest rates too low and then giving people a mortgage writeoff on their McMansions.
What do I care? I’m going on unemployment next week. No debt here.
March 7, 2008 at 5:08 PM #166182gold_dredger_phdParticipantLooks like the Keynesian wet dream is just not going to come true. Labor or normal people need more money or an increase in income if they are going to increase their spending.
It’s really disgusting how the government and business try to encourage people in the country to take on more debt. First by keeping the interest rates too low and then giving people a mortgage writeoff on their McMansions.
What do I care? I’m going on unemployment next week. No debt here.
March 7, 2008 at 5:08 PM #166090gold_dredger_phdParticipantLooks like the Keynesian wet dream is just not going to come true. Labor or normal people need more money or an increase in income if they are going to increase their spending.
It’s really disgusting how the government and business try to encourage people in the country to take on more debt. First by keeping the interest rates too low and then giving people a mortgage writeoff on their McMansions.
What do I care? I’m going on unemployment next week. No debt here.
March 7, 2008 at 5:08 PM #166083gold_dredger_phdParticipantLooks like the Keynesian wet dream is just not going to come true. Labor or normal people need more money or an increase in income if they are going to increase their spending.
It’s really disgusting how the government and business try to encourage people in the country to take on more debt. First by keeping the interest rates too low and then giving people a mortgage writeoff on their McMansions.
What do I care? I’m going on unemployment next week. No debt here.
March 7, 2008 at 5:08 PM #165767gold_dredger_phdParticipantLooks like the Keynesian wet dream is just not going to come true. Labor or normal people need more money or an increase in income if they are going to increase their spending.
It’s really disgusting how the government and business try to encourage people in the country to take on more debt. First by keeping the interest rates too low and then giving people a mortgage writeoff on their McMansions.
What do I care? I’m going on unemployment next week. No debt here.
March 7, 2008 at 5:08 PM #166088EconProfParticipantBobS
The author of this article, Stephen Roach, known as “Dr. Doom” in the late 1970’s for his correct predictions of inflation, is spot-on. His parallels between Japan’s long real estate bubble and following deflation and our similar path cannot be ignored.
Looking back at Japan’s long slump, it is easy to see their policy failures in fixing the problem. Our current bubble deniers claim we are smarter now than the Japanese have been. The scary thing about our current situation, however, is that there may not be fixes–both monetary and fiscal policy tools won’t work. Stimulus may only aggravate inflation and weaken the dollar. Still, they will be tried by our politicians because they are expedient and show “They care”.
I believe the decline will continue at an accellerating pace, and the bottom will be when foreigners buy up US real estate in a massive way. The cheap dollar only makes it more attractive. At some low point, foreign buyers savvy enough and gutsy enough will act…there is already some evidence of this happening. Look for more to happen.March 7, 2008 at 5:08 PM #165771EconProfParticipantBobS
The author of this article, Stephen Roach, known as “Dr. Doom” in the late 1970’s for his correct predictions of inflation, is spot-on. His parallels between Japan’s long real estate bubble and following deflation and our similar path cannot be ignored.
Looking back at Japan’s long slump, it is easy to see their policy failures in fixing the problem. Our current bubble deniers claim we are smarter now than the Japanese have been. The scary thing about our current situation, however, is that there may not be fixes–both monetary and fiscal policy tools won’t work. Stimulus may only aggravate inflation and weaken the dollar. Still, they will be tried by our politicians because they are expedient and show “They care”.
I believe the decline will continue at an accellerating pace, and the bottom will be when foreigners buy up US real estate in a massive way. The cheap dollar only makes it more attractive. At some low point, foreign buyers savvy enough and gutsy enough will act…there is already some evidence of this happening. Look for more to happen.March 7, 2008 at 5:08 PM #166095EconProfParticipantBobS
The author of this article, Stephen Roach, known as “Dr. Doom” in the late 1970’s for his correct predictions of inflation, is spot-on. His parallels between Japan’s long real estate bubble and following deflation and our similar path cannot be ignored.
Looking back at Japan’s long slump, it is easy to see their policy failures in fixing the problem. Our current bubble deniers claim we are smarter now than the Japanese have been. The scary thing about our current situation, however, is that there may not be fixes–both monetary and fiscal policy tools won’t work. Stimulus may only aggravate inflation and weaken the dollar. Still, they will be tried by our politicians because they are expedient and show “They care”.
I believe the decline will continue at an accellerating pace, and the bottom will be when foreigners buy up US real estate in a massive way. The cheap dollar only makes it more attractive. At some low point, foreign buyers savvy enough and gutsy enough will act…there is already some evidence of this happening. Look for more to happen.March 7, 2008 at 5:08 PM #166099EconProfParticipantBobS
The author of this article, Stephen Roach, known as “Dr. Doom” in the late 1970’s for his correct predictions of inflation, is spot-on. His parallels between Japan’s long real estate bubble and following deflation and our similar path cannot be ignored.
Looking back at Japan’s long slump, it is easy to see their policy failures in fixing the problem. Our current bubble deniers claim we are smarter now than the Japanese have been. The scary thing about our current situation, however, is that there may not be fixes–both monetary and fiscal policy tools won’t work. Stimulus may only aggravate inflation and weaken the dollar. Still, they will be tried by our politicians because they are expedient and show “They care”.
I believe the decline will continue at an accellerating pace, and the bottom will be when foreigners buy up US real estate in a massive way. The cheap dollar only makes it more attractive. At some low point, foreign buyers savvy enough and gutsy enough will act…there is already some evidence of this happening. Look for more to happen. -
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