It is indeed unfortunate that the financial community hasn't let
things take a more natural course. We would likely have had a series
a smaller shorter crashes which would have had the advantage of not
hurting everybody at the same time, and would have allowed short
periods of stability in between for people to catch their breath and
regain some balance. So much for the fabled free market...

Here is a link to a very telling chart of the average single family
home price over the last 40 years.
http://www.chartoftheday.com/20080229.htm?T
As you can see it went parabolic over the last 15 years, and
financial history tells us that parabolic price changes usually
return to just a little above their starting points - but in a short
brutal straightline fashion.

Lessinger talks a bit about a deflationary depression in his writings
(I'll try to dig some quotes up later). What do you all think about
the current fear of the opposite - Inflation?

Greg



--- In schizomania@yahoogroups.com, Phil <pstottmfc@...> wrote:
>
> Well, it looks like some of the people have more sense than their
government, at least in spending within their means. Instead the Gov.
is continually inflating the dollar by having the Fed. Reseve create
$Billions daily out of thin air to support unsupportable govt.
spending on wars etc.
>
> Few realize that the banks and the US Gov are only BORROWING this
money from the Fed. Reserve, (which is actually a private bank owned
mostly by the foreign elites).
>
> They have to pay it back to the Fed. at interest. They are
rapidly losing the possibility of doing so as the tax base decreases.
>
> More people are losing jobs to offshoring, and so more people
walk away from mortgages on which they have been paying interest-only
as the property values start to dip. And so the bundled Mortgage
Backed Securities get downgraded and are no longer AAA investment
quality. And so the funds and banks have to get rid of them, but
there are no buyers...
>
> A big crunch worse than the '30s is on its way, and the longer
the Gov. tries to prop things up, the harder the fall will be.
>
> g_baka2002 <g_baka2002@...> wrote:
> Check out what people are saying in this USA Today article. Here
are
> a few snippets:
>
> SNIP
>
> ---------------------------------
> Be smarter than spam. See how smart SpamGuard is at giving junk
email the boot with the All-new Yahoo! Mail
>
> [Non-text portions of this message have been removed]
>