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| The big problem in the economy was the implosion of the Housing market.. we are already back to 2003 price levels.. Therefore, if you bought your house before 2003.. EVEN IN TODAY's economy you probably still have equity in it.
Now granted there was quite a bubble from 2004 peaking in 2006 and we are down about 30% from those highs... I wish I could post a chart of the Case-Schiller 20 City composite index.. I think that is the most relevant chart when looking at the economy.. But we are already 5% above the low... (now granted.. it's amazing what $1.25 Billion of Fed/Treasury purchasing of MBS of which 1 Billion has been spent.. can do for a market...) but still as soon as people start to BELIEVE that the bottom is in.. more will step into the water and see that things are fine.. it's okay to buy a house again.. and today's interest rates are really low.
People continue to talk about banks.. blah blah blah.. but given that mortgages written through the heart of that mess... surely had something put down.. and the vast majority are still making the payments.. the inventory of foreclosed properties will decrease over time and this mess will get cleaned up just like the Resoulution Trust Fund did to the S&L's in the 1980's.. I do believe the worst of this storm is behind us.. not totally over.. but mostly over.
If the Government would STOP soaking up all the free credit.. there would be MORE for the Private sector to use to CREATE REAL JOBS!!... When the Government talks about creating jobs.. the thing they forget to tell you is that they are only talking about creating more GOVERNMENT jobs.. whether they are needed or not. btw.. was it a government bureaucrat who dreamed up the idea of shutting down the engines on aircraft to save the Carbon footprint? Seriously, does our economy need more of this? Now granted there are a lot of good servants in government.. but EPA has supported the past year making the rest of us SWEAT HOW TO PAY THE MORTGAGE and put the kids through college while dealing with INEXORBINANTE CARBON TAXES... maybe it's time to put the shoe on the other foot and see how they like it... maybe then we can come to an understanding.
Most of the 40 minute rebuttal from my friend was about the ineptness of government.. "They tried to put everyone in a house... they suspended sound rules like no payment down.. also allowed interest only mortgages... etc..The Community Re-investment Act.. and so forth ." I wasn't taking notes on everything.. but.. anyway I get the point.
The Private Sector will heal itself... as long as the cancer that is government is not allowed to interfer.. Removing the cancer is the answer as to how long all this will last.
Edited by JonSCKs 2/1/2010 13:34
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The US Budget in a Growing economy!!
