A very interesting article on how, yes, things can get worse. A bit of history that may well be a distant memory to some as well. The Age of Prosperity Is Over - WSJ.com
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“Scientists are people who build the Brooklyn Bridge and then buy it.” Wm. F. Buckley, Jr.
One thing seems clear - When the market goes up 800 points one day and down the next and then again and then again - It means the people in the market dont really know where the hell it ought to be at all. They are just guessing, which makes me nervous.
Some numbers of no small interest to us. Numbers that are not going to make the bailout look any better to us either. The pigs do not want to be eaten.
Well, finally. We have an article which was actually researched before the guy wrote it.
As to his conclusions? He actually has it partially right.
"As Liebowitz observes, what we are currently seeing is often characterized as a subprime crisis, but in fact, it is an adjustable-rate mortgage problem. "
I agree with this, and is why I called for government help on the other end of the spectrum instead of the bailout they passed.
However, he over stated the 'flipper' syndrome significantly. Did they walk away from homes? Certainly. But not enough to impact the numbers the way the author has slanted his story.
Each of these was a key component in the mortgage mess in the following order:
1.) adjustable rate mortgages (#1 problem)
2.) underemployment
3.) loss of job
4.) Flippers (as much as 25% of the Florida, Ca, Az market which drove prices up before 2006)
The media covered all of these. Check back issues of Time magazine, Newsweek, the New York Times, etc..
A very interesting article on how, yes, things can get worse. A bit of history that may well be a distant memory to some as well. The Age of Prosperity Is Over - WSJ.com
And so much for the efforts of conservatives on here to lay the current debacle on Bill Clinton. And words to remember in the last paragraph quoted below.
"Bill Clinton and Alan Greenspan added their efforts to strengthen what had begun under President Reagan. President Clinton signed into law welfare reform, so people actually have to look for a job before being eligible for welfare. He ended the "retirement test" for Social Security benefits (a huge tax cut for elderly workers), pushed the North American Free Trade Agreement through Congress against his union supporters and many of his own party members, signed the largest capital gains tax cut ever (which exempted owner-occupied homes from capital gains taxes), and finally reduced government spending as a share of GDP by an amazing three percentage points (more than the next four best presidents combined). The stock market loved Mr. Clinton as it had loved Reagan, and for good reasons. The stock market is obviously no fan of second-term George W. Bush, Nancy Pelosi, Harry Reid, Ben Bernanke, Barack Obama or John McCain, and again for good reasons. These issues aren't Republican or Democrat, left or right, liberal or conservative. They are simply economics, and wish as you might, bad economics will sink any economy no matter how much they believe this time things are different. They aren't."
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SailorMitch
Sailing winged keels since 1989. 1.20.09 Bush's last day the end of an error !! Hopefully we still have a constitution and economy left by then.
"Compassion and tolerance are not a sign of weakness, but a sign of strength." The Dalai Lama
good planets are hard to find-- a song by steve forbert
I have but one lamp by which my feet are guided, and that is the lamp of experience. I know no way of judging the future but by the past.-- Patrick Henry.
Free, is the heart, that lives not, in fear.
Full, is the spirit, that thinks not, of falling.
True, is the soul, that hesitates not, to give.
Alive, is the one, that believes, in love. JCP
Well, Rick should be a happy camper today, we finally had a quarter of negative growth. Now he's halfway to an official recession.
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John
Ontario 32 - Aria
Free, is the heart, that lives not, in fear.
Full, is the spirit, that thinks not, of falling.
True, is the soul, that hesitates not, to give.
Alive, is the one, that believes, in love. JCP
