Housing Bubble Bursting?

[Randolph Kinney]

I hope everyone read that article moh posted. Have you ever heard the joke about the golfer that died and went to hell. When he got there the place was one nice golf club. The greens and fairways were perfect. He thought; boy did I make the right decision on how to live my life. This hell is the place to be. He got out his set of ping clubs and headed to the first tee, then he got the bad news. Lots of golfers lined up at the 1st tee informed him that there were no golf balls in hell.
The reason that story came to mind after reading that article is that if and when the Democrats get back in power in 2008, they are going to get the bad news. There ain't no money to give away or buy votes with. I guess we can call it Bush's revenge. He spent all of the damn money. That is why I am voting for Hillary. God's favority trick to inflict judgment is to give people what they crave and them not let them be able to use it. Like for example, no golf balls in hell or all power and no money to use it.

Moh's article link recites history and points the finger back to government policies of deficit spending and expansionary credit as the means for lifting the economy out of recession. But not without a cost, which they is argued is made worse by those policies.

One of the perversions of our tax system and cost of capital is that it becomes cheaper to export our jobs and import the finished goods back. The problem is papered over with rising inflation but that inflation is muted on wages here. Rising material prices here can be made up with cheaper labor overseas so the jobs are transferred. But look how productive we are? :new_smile-l:

 

[Big ole Boy]

I had a dream the other night about gold

Roger,

I am half way through the second installment of Caveman Money .... it reminded me of a dream I had the other night about gold and poker.

I dreamed about a day when allure of real gold nuggets is so strong that people assemble into large gambiling houses and have thier nuggets tested for authenticity and sit down to play poker with gold coins and gold chips ....

they only civilized way for wealth to exchange hands without bloodshed ....

 

[Big ole Boy]

shizam!

Roger,

That was a thing of beauty ..... enjoyable reading .... you have a very creative spirit ....... a happy spirit to boot .....

 

[JSmith43]

Roger,

That was a thing of beauty ..... enjoyable reading .... you have a very creative spirit ....... a happy spirit to boot .....

Well, I'm glad you liked it. So much depends upon the spirit of the reader!

 

[Brad Ellis]

Randolph,

Here is a link to real GDP during the supposed 2001 recession:

http://www.bea.gov/briefrm/gdp.htm

It is from the US commerce department. I shows there was NOT 2 quarters in a row of negative growth; hence no recession in 2001.

You are still believing the press reports.

Brad

 

[moh malekpour]

That was a pretty good article. NAFTA was one of the few things Clinton spent political capital on that made sense, IMO & one of the times he literally switched sides after the '94 *** whoopin. Remember him sending out prince Al Gore to debate Ross Perot? Priceless! Al Gore would sell out Greenpeace if there was enough in it for him. He literally boxed Ross Perots ears.

Other than the NAFTA comments, not much to disagree with, actually.
Cheap oil in the late '90's was a significant element of productivity. We also thank China and Wal-Mart.

The Nafta and Globalization are getting nowhere. We see now that Ross Perot was right on Nafta and globalization. These ideas are good in theory but stink when you put them in practice. The Nafta was supposed to bring prosperity to Mexico so people could have good paying jobs with no need to come to US illegally looking for work. Look what they got. They are still coming to US even more. The globalization was supposed to open market and create consumers for American goods and products in developing nations like China and India, look what we got. We became their consumers instead of they become our consumers. The result is just the opposite of what it was supposed to be and has given now a good reason to protectionist in all developed nations especially USA to put a halt on it because it is going nowhere.

 

[DTB]

The Nafta and Globalization are getting nowhere. We see now that Ross Perot was right on Nafta and globalization. These ideas are good in theory but stink when you put them in practice. The Nafta was supposed to bring prosperity to Mexico so people could have good paying jobs with no need to come to US illegally looking for work. Look what they got. They are still coming to US even more. The globalization was supposed to open market and create consumers for American goods and products in developing nations like China and India, look what we got. We became their consumers instead of they become our consumers. The result is just the opposite of what it was supposed to be and has given now a good reason to protectionist in all developed nations especially USA to put a halt on it because it is going nowhere.

Moh,
I gotta give credit where credit is due. I could not agree with you more. And I would add the "real" idea behind globalization is to bring the US economy and citizens DOWN to the level of other nations, not vice versa.

It would be difficult, short term, but I wouldn't need a product that was imported, ever again.

 

[JSmith43]

The Nafta and Globalization are getting nowhere. We see now that Ross Perot was right on Nafta and globalization. These ideas are good in theory but stink when you put them in practice. The Nafta was supposed to bring prosperity to Mexico so people could have good paying jobs with no need to come to US illegally looking for work. Look what they got. They are still coming to US even more. The globalization was supposed to open market and create consumers for American goods and products in developing nations like China and India, look what we got. We became their consumers instead of they become our consumers. The result is just the opposite of what it was supposed to be and has given now a good reason to protectionist in all developed nations especially USA to put a halt on it because it is going nowhere.

The GM plants in Mexico are making it better than it would have been otherwise. Other than populist political points, what do you have as evidence that putting up trade barriers sufficient to stifle free trade would have made our overall economy better? Are you going to claim that pre NAFTA arrangements were at an optimal balance point?

Mike. That's a good one. Should we stop importing oil tomorrow? Mexico is a supplier. Someone always knows someone whose ox has been gored, or Al Gored in this case:icon_smile: and that makes it the harder case to make, since the argument for lowered trade barriers is more abstract and less easily personalized. But the amazing growth of other industries has been spurred on by lessening of trade barriers.

 

[Bobby Bucks]

Roger thanks for posting that again. Even as a rough draft it is publishable.
It will certainly add another star to the rating of this thread.

 

[moh malekpour]

The GM plants in Mexico are making it better than it would have been otherwise. Other than populist political points, what do you have as evidence that putting up trade barriers sufficient to stifle free trade would have made our overall economy better? Are you going to claim that pre NAFTA arrangements were at an optimal balance point?

Mike. That's a good one. Should we stop importing oil tomorrow? Mexico is a supplier. Someone always knows someone whose ox has been gored, or Al Gored in this case:icon_smile: and that makes it the harder case to make, since the argument for lowered trade barriers is more abstract and less easily personalized. But the amazing growth of other industries has been spurred on by lessening of trade barriers.

If GM plants has made any good on the economy of Mexico, why a flow of people are endangering their lives to come here to work? Other than populist political points so called protectionists, I refer you to US trade deficit build up since the NAFTA. NAFTA and Globalization are good to keep the inflation down but in the expense of huge trade deficit and national budget deficit. Needless to say it has been good for China and India if it was the purpose.