Can we take the Bible seriously, for once?

That chicken little refrain is what you posted on my Blog.

Did the world End in the Depression 1929-1939? What about the Depression of 1893? What about the double digit Misery Index in the Carter years?

There is an economic bubble right now created largely by the housing market and effecting many other industries. I bought my rental property and living house with reasonable mortgages at good rates. I have no trouble renting the rental property and making my house payments.

I sold a bunch of mutual funds recently when the DOW was about 12000 to pay cash for a boat. (paid 17K for the boat about 10K came from funds.) There was a net profit in the Funds when I sold them and they had been solid investments.

Now with the low market I continue to buy monthly investment shares in both IRA and investment funds. In a way the low Market is a benifit because I get more shares for less money and have full faith that the Market will recover. (may have to wait til after Obama but I am patient).

Life is still good. Fish still Bite, I will get a new TV in after Christmas sales at a good price, boat runs great and as I get ready to retire from the Army and get a new job in the Spring I have already been contacted by several companies that want to hire me.

As in all Markets some win and some lose. With careful planning, hard work, a long term outlook and no panic it is easy to be a winner in America.

Your panic chicken little routine did make me smile though. So thanks for that. :)

Of course government Pollyanna shills such as Tinsldr2 couldn't be objective about the troubles we face.

The fact is the only way the government bailout plans could possibly work is to have real estate valuation increase. However, this is equivalent to defying the law of gravity. Unless Tinsldr2 will give a plausible explanation how this will magically occur, I doubt it will be forthcoming.

It is common sense that borrowers who have financed a house with 0-20% down will just prefer to walk away from a house whose market value has declined by 20% or more. With rising unemployment and small businesses closing in every town, I suspect real estate values to continue to decline.

It is common sense that with increasing unemployment and a decrease in consumption spending that it is unlikely this will aid in recovery that will magically make home values increase.

The fact is, that this present crisis, will spread to Alt-A mortgages, then Jumbo, and finally prime before it is over. Anyone that doesn't have at least 50% equity in their home will face the prospect of walking away.

Its exacerbated that the previous economic boom cycle encouraged massive debt (HELOCs to remodel kitchens, buy Mercedes, or vacations). HELOCs are far less forthcoming method to spur growth.

Then lets not forget all the mal-investment by Greenspan's 1% prime rate cut as an economic pump. How it encouraged many to go into the lending business, become realtors, home builders, real estate investors. Lets not forget how factories geared up for perpetual increase in sales.

Then there's the government expansion that has occurred with the boom days and days of war. Two departments of military, now.

With paper wealth evaporating, all of this will dry up. I suspect because of the government intervention, this mess will turn into eternal depression with no end in sight.

Did tinslr2 live through the depression of 1929?

For some, it did. I suspect this depression will be worse. Why?

The US was at the beginning of an industrial revolution with massive growth (retarded by war, of course). The US in present day doesn't have that luxury. The US has a FIRE economy .... paper wealth....Finance, Insurance, Real Estate which lead by Real estate, and Finance, as well as Insurance, has poof'd up in flames.

Who will fund our debt when the government continues to devalue the dollar? None of these questions are considered by government shills such as Tinsldr2.