here ya go Buy low and Hide Quickly
http://www.articlesbase.com/religio...ple-depressed-in-the-united-states-81292.html
http://www.articlesbase.com/religio...ple-depressed-in-the-united-states-81292.html
Notable Economists Contend That Empirical Data Show That Global Depression Has Begun
- Thread starter ByLoSellHi
- Start date
I'm on top of the world there, chief.
Tons of liquidity, getting to pick out assets for a song and a dance that I've wanted in the past, but was too disciplined to pay inflated prices for, and waiting for a time like the upcoming period to deploy twice or three times the purchase power for the same outlay.
I'm about to pick up an M5 for such a distressed price, you wouldn't believe it if I told you, and it's cherry, cherry, cherry. Guy that bought it is broke, and is begging me to buy it from him for any price - he paid cash when times were good. He's losing his house, and I've done him a huge favor on that end, which will allow him to keep it.
There's a lot of dumb money that was lost in the last two years. Conservative and astute people who knew it was too good to last took chips off the table and hunkered down, but they represented a ration of 1 to 15 or more (one astute person to 15 dumb money people), so there's still not a lot of people with money and no debt around.
I'll again be looking at Pacific Beach and La Jolla real estate in 3 weeks, though I still don't think it's ripe. It will probably take another year for the real pain to set in, and even the holdouts in those areas to begin begging for cash.
We'll see.
:eek: I am blushing with envy....an M5 huh? Knowing you I would suspect you don't mean a BMW ...more likely the M5 you are picking up is a 5 month supply of diapers.
This is a great article. It lays out the different schools of thought about the GD. I wish they would go into the theories about solutions though. One thesis that I'm starting to cling to is that the interventionist policies of the 1930's actually made the contraction worse by taking capital from the private sector and allowing government waste to dilute any capital that was left, thereby contracting the money supply very tightly.
The same thing we are seeing today. Every time the government passes a huge interventionist budget, the capital markets fall and a new round of deleveraging begins. They are sucking all the useful capital out of the economic system into the bureaucratic, wasteful cycle of government policy.
Central planning never works because they allocate resources to a very small group of businesses within the economy that have political connections. The result is the growth of capital intensive industries that price fix and create inflation, while the small business community is choked off. All available capital is funnelled away from useful, economic expanding paths, to over-bloated, unproductive means.
Just like the military industrial complex. They don't produce any goods that increase the size of the economy. They produce bombs, bullets, planes, and tanks that once used are gone, and with them the available capital that could have been put to use in the real economy.
The same thing we are seeing today. Every time the government passes a huge interventionist budget, the capital markets fall and a new round of deleveraging begins. They are sucking all the useful capital out of the economic system into the bureaucratic, wasteful cycle of government policy.
Central planning never works because they allocate resources to a very small group of businesses within the economy that have political connections. The result is the growth of capital intensive industries that price fix and create inflation, while the small business community is choked off. All available capital is funnelled away from useful, economic expanding paths, to over-bloated, unproductive means.
Just like the military industrial complex. They don't produce any goods that increase the size of the economy. They produce bombs, bullets, planes, and tanks that once used are gone, and with them the available capital that could have been put to use in the real economy.
I posted this article because it's one of the more thorough and analytical ones speaking to the credit crisis and consequent ramifications, as well as government intervention, that I've seen, ever.
It's refreshing to see there are people on ET who appreciate such articles, data and points of view, such as yourself, and actually possess the ability to read and assess the opinions and POVs presented in these articles.
Quote from toc:
If it is another Great Depression then another Great War is not too far away.
Global war is one easy way to come out of the depression. Hope not for either scenario!
I have it on very good authority that the Pentagon has quadrupled its orders for the Joint Strike Fighter.
Now, I don't know if that means anything or not, but given how expensive that aircraft is, and given its capabilities, it should mean something.
Quote from toc:
If it is another Great Depression then another Great War is not too far away.
Global war is one easy way to come out of the depression. Hope not for either scenario!
I think it's the Iraq war and the huge debt incurred for it that helped get us into the current depression.
I believe that we came out of the first great depression in spite of the second world war, not because of it.
That's part of it, but the bigger part is housing and overleveraged, phony derivatives.
That is now and has ALWAYS been the goal and plan of the Socialist/Liberal/Democrats.... which is why they are so bad for the future of America.
