Saturday, July 26, 2008

The housing decline is not yet done, because we will need another year to unwind foreclosures in the pipeline.

Where Is the Economy Going

The underlying problems have not been fixed with this massive bailout. But the much bigger implication is that the Fed is busy pouring more gasoline on the fire by fighting the collapsing housing bubble, a housing bubble created by excess liquidity, with yet more liquidity. That is the key point that should be taken from this mess. The dollar is now firmly on an even steeper slope to its ultimate demise. Other currencies will be sliding down the same slope, so another paper currency is not the answer.

Posted by malct @ 01:32 PM (502 views)
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