Flagpole wrote:
I just wanted to make sure you didn't think I was necessarily agreeing with them. I think it's possible that they might be right, and I certainly hope as you do that they are, but I don't have enough faith in any financial expert to say I'll follow their advice to the letter. I do believe it will get better...LOTS better. Just might take a while yet.
Some things are going to help workers big time down the road -- retiring Baby Boomers. Frees up jobs and allows for promotions and more wealth for the working. Cheaper housing. When people are allowed to buy homes for cheap, it gives them more disposable income. This disposable income props up the economy. Not happening yet, but it will.
Just a few questions from a dumbass with a third-grade edumacation. What happens when the market caves when and BECAUSE boomers capitulate, vomit, and attempt to salvage what's left of their meager portfolios at the same time their house has fallen 30-40% in value? Think they will be retiring on schedule?
What happens when, because we will be "forced" to run the very type of fiscal policy that thwarts investment and encourages capital flight, and our syphon of a public education system is producing kids that can't produce with the rest of the globalizing world, we can't grow industry? Just who in the hell would start a company and create jobs in that kind of environment? We're more concerned about splitting up a dwindling pie, gay marriage, and who America's Next Great Talent is going to be than we are about competing.
What happens when homes continue to be artifically propped up and inhabited by a less productive class that doesn't deserve to occupy them, by pegging rates and further distorting the credit markets? All at a time when would-be pent-up demand from people who, like my brother, can't afford a home YET but will be taxed to subsidize those who shouldn't be in them to begin with, keeping it further out of reach?