Fucked entities do not "self-correct."
Houses ain't cheap because of an economic cycle. They are cheap because of fraud.
Posted by The Creator at March 2, 2009 08:11 AMGeorge Soros diagnoses the problem as Market Fundamentalism. This panel discussion with Soros, Sachs and Roubini had quite a bit about how poorly the Chicago school of economics is in describing what's really going on these days.
Posted by Mary at March 2, 2009 09:42 AMHousing was a canary in the coal mine. Once trust in the current credit system blew up, people looked at the cold hard reality of a 30 year debt binge in the developed world.
Posted by purple at March 2, 2009 08:10 PMGovernment intervention into the markets is prolonging the recession. George Mason U. economics department head Don Boudreaux makes some interesting points in this letter/blog item:
"The Dow fell another 300 points today (”Dow plunges nearly 300 to close below 6,800,” March 2). This fact means that the Dow is down 41 percent since the first trading day in September (the month in which the Bush administration and the Fed shifted wildly into a mad mode of bailouts, “stimulus,” and money creation), down 30 percent since Barack Obama’s election, and down 15 percent since Mr. Obama took office."
The economy would rather the government argue about school prayer and flag burning.
Posted by dennis at March 2, 2009 09:13 PMGovernment intervention into the markets is prolonging the recession.
Nonsense. With deregulated financials running amok, government intervention is the only thing saving your silly butt.
In 1983 I lived through an oil economy that, when the oil market dropped, caused housing Statewide to drop by 40%. Get over it. It's done.
Has housing dropped since Obama was elected? Hell yes. It's dropped almost as much as it dropped since the Phillies won. Curse November for all it's worth, but you have accomplished nothing. The housing drop and these things are not significantly related.
The stock market will do as it will do. It is a rigged casino and anyone in it is foolish. Too bad the Feds (republi-KKKons) made it your pension of last resort. But those who studied and understood the risk took their money and put it in more secure assets. Things of value, but certainly not the market. The market is a sucker's bet. Anyone in it SHOULD get fucked over.
The lack of regulation, any regulation...some regulation of some form...in the financial markets caused this. Nothing more. You are living in republi-KKKon heaven. You are living in the republi-KKKon unregulated no government impact dream world. Ya like it?
Posted by phidipides at March 2, 2009 10:10 PM