Quote:
Originally Posted by GregE
The recession won't end until people do start spending again. The longer the recession lasts the higher the unemployment numbers will get. Kinda hard to save money when you ain't got no job.
As for producing, produce what? We shipped almost all of our manufacturing jobs overseas years ago. Once the big three automakers go down (and Schiff strongly advises against bailing them out) they'll be no manufacturing jobs left. None, zip, nada, that's nothing to produce.
Like it or not we've got ourselves a service economy now and we're stuck with it.
A classic catch 22, eh?
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you are right and you are wrong.. the root of the problem is the housing market, dropping real estate values started the entire demise and it is still going strong.. the feds have been dancing around the issue and think that putting money in the hands of banks will make all good again, WRONG they must fix the real estate problem, either fed start buying homes or "force" banks to buy up real estate so that the values dont keep dropping.
real estate is like currency, if they start free falling government must intervene, and at this point just dropping interest rates is not enough since the banks will not release the funds.