Do you guys see how much of this crisis is driven by psychology versus fundamentals? People are panicking. Nothing good ever comes of that.
Back in them thar days of double digit inflation and Iran Contrafied kidnappings, a very bright man spake about the effect of the psychology of inflation. His name was ZBlkjcAo BSrsiyfgholsdkgs
or something like that. Lotsa end-of-alphabet letters, very guttural. Nonetheless, I believed he was spot on as I do your statement above.
The underlying assets (stocks and homes) are not worthless. The value of the homes will never drop to anywhere close to zero. The problem is that there is fear about the immediate future and everyone wants to hoard what they have rather than take a chance on buying anything. So the market value of the asset drops because the sellers are desperate to sell but no one is keen on buying. This will eventually pass.
My, you are on an intellectual roll, please continue.
I'm not saying there is no crisis. Far from it. I think we will probably experience a serious recession......But if we figure out ways to stay productive, we can avoid the worst of it. Adapt to the new environment, learn from our mistakes, and on the other side of this we will all be better for it.
Yazzir, they fraudsters will have to come up with new way to milk the constituents tax givings, we ain't a gonna be doin' no more 100% financings to thems Mexicano green card carriers. <spit>
