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The Natural Order of the Cyclical Market
The Natural Order of the Cyclical Market
The moment you begin to interfere with Free Market Capitalism and manipulate the natural order of the market, in anyway, you no longer have Free Market Capitalism.
The Great Depression lasted for 16 years BECAUSE of the interference and the efforts to prop
up prices and manipulate the Free Market. Leave it alone. Stop trying
to control the effects from the causes that have been in the works for
decades and let it fall to the bottom and correct itself so the market
can quickly recover and begin to build itself up again. You can never
control "effects", you can only eliminate the cause to avoid those
effects. The more interference that is allowed in the free market, the
greater the pain will be and the longer it will take to recover. It's
very, very simple.
C'mon. There's a 1 Quadrillion Derivatives market beginning to explode, more than half of it is unregulated, to the tune
of $575 Trillion with 10% in CDS' (62 Trillion). Seriously, 1.5
Trillion of US funds (monopoly money that is being printed creating the
future hyper-inflation that will swoop in to correct the flawed monetary policies of the Fed) will do what to this failing Quadrillion Derivatives
market? Nothing but bailout those at the TOP of the money pyramid.
There's a whole lot more selling to come to the detriment of everyone
else!
And, as an experienced Real Estate Broker, if someone says
"Who could have predicted this fall of the housing market?" (which I
have heard many times), smack them upside the head because they are
either a clueless idiot or a crook! How could anyone NOT predict it?
It's a natural part of the cyclical market. The higher the climb, the
greater the fall. Pretty simple. Real Estate, like everything else,
is cyclical. Double digit percentage increases in housing prices of
existing homes in a year's time or less? Get real! Eventually the
explosion dissipates and you're left to deal with the effects of the
explosion and what remains in it's wake. It's the natural order of
things and needs no further explanation.
How
long will that Dixie cup hold all that water? Sure you can keep
placing it in a fresh new cup to keep it from leaking out but,
realistically, how long will you keep doing that before you eventually
realize that despite your continuous efforts to prevent the inevitable
from happening, all the water has evaporated! What a waste of precious
resources, eh? We'd all be better off if we left the worthless Dixie
cup alone (bankruptcy) and allow someone who wants to save the water
come in and rescue it with a glass (the sale of remaining assets by the
courts to qualified purchasers). They [purchasers] were smart enough
to wisely use the appropriate methods of containing the precious
resource in a container that is solid enough to withstand the tests of
time and are well suited financially to move in and buy up what
remains, salvage what is left of the precious resource and restructure
the management to mirror the success that has positioned them to be
where they are. And the idiot using the Dixie cup? Well, survival of
the fittest - let them die. Good riddance!
Laura/whereabouts
posted on Oct 15, 2008 5:02 PM ()
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