Quote:
Originally Posted by Rocky_Shorz
Well because you can currently buy homes at 35% of their value 2 years ago, they don't have much further to fall. New home builders have stopped because they can no longer build a home for as cheap as the market has fallen.
Much of our economy and jobs are tied to building new homes.
Imagine if new homes stop for 5-10 years, once they are ready to start building again, there won't be anyone with recent experience to do it, they will have moved to other professions. The largest builders we have, will have gone bankrupt, folded up and gone away...
Since you are knowledgeable in so many areas, what is the answer?
What would you do right now this second to turn things around?
We were 500 trades from a complete collapse of the banking system.
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*whatever the current percentage of home value loss, it has much further to go, probably to mid 90's levels or lower, because only then can the American whose wages have DECLINED can afford them with a fixed 30 year mortgage at interests rates that MUST be higher to stave off inflation. That and the current glut of UNSOLD houses all but guarantees that this will happen no matter what the FED and Treasury does.
Let the crash occur, it will anyway, these moves simply will make it more painful and it will last longer. Abolish the FED and return the nation to a debt free no fiat currency regulated by Congress as the document known as the Constitution mandates. Because of the criminals who have gotten us here, and we go all the way back to the year 1913 here, there is nothing to prevent severe, severe economic times. What we shouldn't do is 1) make it worse, and 2) do so while turning the nation into a fascist nation, where companies keep profits while the common man pays the losses.
Again, the crash will happen, the privatized central banking system combined with fractional reserve banking has boom and bust as its ONLY outcome. We must take the pain, and then abolish the system that got us here. Or we can relive the experience of Germany in the 30's and 40's.