That was told on CNBC as rate cuts don't work As RE highest leveraged part of US economy - US can't afford any price deflation anymore I guess it can be easily achieved by passing 10$ trillion stimulus package by sending 300 000$ to every household in US What interesting Bush was asked today about second stimulus package - so probably I'm not wrong - US will cancel all debts this year through inflation to save housing and working americans
ok would you mind to make some NOT absurd commentary how US government can stop housing deflation let's say in six months without any major impact to currency value and debt level?
1. There have been about a dozen or so threads on this topic or similar in the last week. 2. I'm not the one who created this one, so don't try to get me to bail out your nonsense. 3. When you make statements like "sending 300 000$ to every household in US" or " so probably I'm not wrong - US will cancel all debts this year through inflation to save housing and working americans " you prove me correct when I call you absurd.
this is the forum of the absurd. please free to express yourself. this ivanovich is full of himself. just ignore him.
out of curiousity, why do you bitch and moan about threads? just let them fall to the bottom of the pile and die...
No, we NEED this housing deflation so the average person can buy a home. RE is still WAY over valued based on historical averages of income/mortgage ratios. Look at chart of prices, or this ratio. They both went parabolic. Yep, the econ will suffer, but that's what happens when a bubble bursts. We've had a massive bubble created by artificially low rates, speculation, and incredibly stupid people buying twice the home they could afford assuming rates would stay super low forever (30 year rates remained in the normal range, but few people could afford a home on anything but the super low ARM's). its best to get the pain out of the way as quick as possible. The FED shouldn't do anything to extend the process. Let it adjust so we can start growing again. For that matter, we need a good recession also. The FED is going to just draw out the process however.