bostonbubble.com

[balor123]

5 Reasons House Prices May Never Recover

[JCK]

Wow. Both inflation AND deflation will cause home values to drop!

I agree to some extent with his points, but arguing on both sides of the coin on this one seems a bit much.

[john p]

I'm starting to get that housing is just the tip of the iceberg, the canary in the coal mine.....

The current "Stimulus" barely helps States that are neck deep in debt. California is almost bankrupt, many other States are cutting are still deep in the red even with all this stimulus.

Add in that the whole outsourcing and trade imbalances to China and India will just continue to get worse, and then...

Add in that we'll have even more people drawing from social services such as Medicare and Social Security and these growing concerns are just going to continue to grow.....

Housing.... to fix all of the above, we either need to do a complete shuffling of the deck, i.e. dillute our currency and dillute or debt or do what other empires that have gone soft have done, and start a war and become predators.

In the end, the people that control the power of the strongest military get to call the shots and they can change the rules if they wish and everyone else has to suck it up and deal. Obama's meetings across the globe recently were ceremonial and were "feel good". We'll see what happens when we start to manipulate/ debase our currency how everyone else feels then. Think about if any other country just turned on the printing press and printed money to get our of their self created problems. Is that a sustainable basis for a responsible member of a global society?

[balor123]

Yup we're screwed. Don't worry about state governments though. Frank has a plan. The Federal government will just start backing those debts, which is basically free of course because municipalities practically never default. In fact, we should securitize them and sell them off with 0 risk!

[balor123]

I meant to add * after "0 risk". It will be 0 risk because AIG will sell the insurance to cover the bonds but they won't have to charge anything for it.