[sailaway21]

Originally Posted by SailorMitch

Sway--almost as good as the horse's ass who posted in podt #12 in this thread "why I am neither worried nor concerned." Talk about spot on analysis and predictions....NOT! Oh, pardon me, that was YOU who said that. as you are want to say--some cognitive dissonance there perhaps?

Mitch,
You'll no doubt be surprised that I am still neither worried nor concerned. I am perplexed admittedly and would like to see matters resolved so that the market stabilizes. But I would ask the question once again regarding the real economy. While it certainly appears to now be slowing, so what? The business cycle is just that, cyclical. To date most of the economy continues apace. Unemployment is creeping up but most people, like most mortgage holders, have their jobs and are paying their note.

I'm in one of the worst states, with arguable the worst governance, and a seemingly permanent 7% unemployment rate-yet we're surviving and even fixing our roads. I see no crisis although I uncharacteristically agree with Rick in the capability of the government to create one with all their "help".

Where I disagreed previously was in the significance of the housing market compared to other factors in the economy. Those other factors have carried the economy along nicely while Rick was advocating the lemming approach. and the reason that I found Rick's post so despicable is that it is irresponsible to create irrational fear in others. Encouraging people to run down to their banks, potentially creating a run, to withdraw federally insured deposits is the height of irresponsibility. You risk creating a large scale panic the results of which could be quite harmless in ways not foreseen. Sort of like posting on-line that Steve Jobs has had a heart attack.

And, as you no doubt remember, I assured you that we could talk ourselves into a recession just on the talk. I have little doubt that that is now occurring.

As to the lending of money between banks and to individuals and others I remain unconvinced by the arguments that this must naturally produce a crisis. If they refuse to lend, other sources will step up to meet the need. The nature of capitalism dictates it. If Bank of America doesn't lend to you someone else, someone interested in making a return on their money, will do so. Let's not forget that these banks have a vested interest in fear, especially if they can profit by keeping their money close to their vests while government provides more to them courtesy of the tax payer.

I continue to fear inflation, perhaps irrationally, but I'm also old enough to know that's the only way all these new debts are going to get paid off.