Interesting timing though. Just as the long-awaited subprime meltdown sets off the long-awaited economic downturn, steps are being taken to reduce the excess labor pool that would inevitably emerge.
If that the correct description, whatever you call it, it is caused by falling demand for housing.
If you combine one million legal plus one half million illegal immigrants per year, for quite a number of years, that has been the underlying driver on housing demand. As the level of illegal immigration has dwindled over the last year, housing demand has fallen. And if there is an exodus of illegals, there will be further dwindling of housing demand.
In Kerkorian's original essay on attrition theory, in 2005, he explained that physically removing the illegals would crash the economy. How the illegals are removed is irrelevant. Whether they are deported or self-deport, losing what they produce and consume will have negative effect on the economy. Especially in CA, TX, FL, IL, and AZ.
EXACTLY. And then the politicians can cover their backside by "proving" how necessary the illegals are to the economy -- that "enforcing the laws" in getting rid of illegals really hurt the economy. Nevermind the heavy losses of the $1.75 trillion hedge fund industry on Friday.
Watch for 15 August -- many people want OUT before it gets worse.
Today, the euro came down because the currency and their markets are no longer insulated from possible subprime losses in the U.S.
AQR Capital Management, Highbridge Capital Management, D.E. Shaw and Goldman Sachs, among others, lost big time and some will not get their money back.
But hey, the world ecnomy hinges on illegal slave labor (according to those who'll use it for all it's worth). A strawman.