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To: wafflehouse

All of the Baby Boomers want to cash out of their McMansions and move into cheap little retirement condos. As they discover that their giants homes won’t sell, they will lower their prices more and more.

In the meantime, the slowing economy means fewer jobs. That leaves less new money available for consumer buying, and also means that fewer and fewer people can get loans.

The above combine to destroy banks and commercial real-estate as loan volume dries up and fewer people shop at malls.

This is wealth destruction at an unprecedented pace.

It is deflationary to an extreme.

To pretend that somehow the government can raise salaries, raise employment, save commercial real-estate, and make millions of McMansions go up in price (i.e. inflation) is to ignore the death spiral that the current global economy is trapped inside.


30 posted on 06/22/2009 9:55:56 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack

i said nothing about salaries, employment or real estate. The government will inflate or die trying.


33 posted on 06/22/2009 10:09:49 PM PDT by wafflehouse (RE-ELECT NO ONE !)
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