what price, page-56

Marine01 Very insightful my friend.

Your assumptions are ‘spot on’ though. Unsustainable credit driven over consumption. US net debt is now around 350% of GDP (a new record) and it was around 280% before 1929. I have no doubt the US’s fate will be worst than Iceland’s and will be bankrupt in the near future. I think the Bernanke Band-Aid will stop the leak for the next few years and the big hit will come after the next bubble. One more hurrah as it will!

Sounds Familiar? The biggest propriety bubble in our nations history will at some point have to unwind. Unfortunately Kevin07Recession09 is making the same mistakes. Tripling FHOG will exacerbate the housing bubble here further, and we all know where this will lead. They will just make it worse for young people, further supporting the asset bubble. The Devine Homes tv ad said today “Does it get any better; there never be a better time; unbelievable” Yes indeed it is UNBELIEVABLE!

If they really wanted to help, they would let the market tank and get prices back to a more reasonable multiple of average salary. It’s going to happen in anycase, but now the pain will be more. Dear is say, “Bailouts Don’t Work!” Having said that here a toast to the next bubble, it will be a cracker.

Caveat emptor!