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Comment from OMG!
Time January 26, 2010 at 6:27 am

“Well, that’s the problem and the reason the housing market has nose-dived and the unemployment rate continues to rise. The large corporations in America don’t drive the economy, they don’t support the local communities across the country and they don’t ensure the most jobs or tax dollars for the most people. They just benefit from all of that.

The showy flowers at the top of the stems got all of the attention while the roots underneath were largely ignored.”

So very true Martha. Even now, as the second shoe gets ready to drop (commercial real estate), the roots go unnourished. It\’s like tracking down an electrical short….go to the source, not the symptoms.

Comment from geoff
Time January 26, 2010 at 11:01 am

OMG: “go to the source, not the symptoms.” Exactly. The real estate bubble. While industry moving offshore, and service industries not quite able to “create” enough wealth to pick up the slack, the US, UK, Spanish and other economies were based on the unfounded belief that real estate values would somehow increase.
If nothing else, that’s the story told to all the Arabs & Chinese & Europeans you’ve been borrowing from since the dot-com bubble burst.
So what’s the next bubble going to be?

Comment from OMG!
Time January 26, 2010 at 3:43 pm

Comment from geoff
Time January 26, 2010 at 11:01 am

“OMG: “go to the source, not the symptoms.” Exactly. The real estate bubble. While industry moving offshore, and service industries not quite able to “create” enough wealth to pick up the slack, the US, UK, Spanish and other economies were based on the unfounded belief that real estate values would somehow increase.

geoff, you missed the point. Not necessarily the real estate bubble as a cause but as an intervention point. The real estate market was actually founded in a fairly good basis for the expectation for it to go up…..I believe this to be historically true. I think most of the fall was created by production overcapacity worldwide.

Comment from rickyblaine
Time March 6, 2010 at 11:06 am

Martha, why do people contintue to ignore the recession of 1920? It was every bit as bad as the economic crisis is today. We got out of it by lower taxes and building up the middle class. Not by social programs and handouts.

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