Warren Buffet came out and said that this is poetic justice.
The pols are really spooked because there is nothing that they can do to actually stop the train.
American ingenuity has been inventing labor saving devices for the last 50 years,,,, and trying to keep full employment at the same time.
Then, they goosed the economy so that they could suck in 80% of the world's savings. We've been pretty sucessful at hosing the rest of the world.
BUT, when all is said and done, the US has been hollowed out. We have no savings and we got rid of the good jobs. At the bottom of everything, the price of a house has to reflect the wages in the area. The wages are gone and the price of a house will never return to the highs of a couple of years ago.
Most everybody knows this. there are still millions of foreclosures to come. When people see that the prices won't come back, they won't continue to pay 400K for a 200K house.
Housing graphs http://goofyblog.net/historic-household ... me-prices/
More nice graphs,,, price of a house in gold; http://investmenttools.com/median_and_a ... the_us.htm
There used to be a negative attitude attached to someone who had a BK. Now a BK is just like a divorce,,, everyone has had one.
People are just too stressed out and they don't feel that it is worth it to kill themselves for a house.
Nothing that the pols do will keep people in a house that is worth half of what they agreed to pay for it. The banks have only had 7 months of this. It will continue for at least another 2 years. They can't possibly bleed capital for another 2 years.
There are $450 trillion of derrivatives looking for a safe haven. It's melting away like a popsicle left in the sun.
Gold has gone up 20% a year for the last few years. The International Monetary Fund is selling it's gold for paper so that it can get a return on investment. With that kind of desperation, the politicos are looking rather panicked. I expect to see some interesting antics from pols everywhere. Unfortunately, war is the usual escape and diversion offered in this kind of situation.