Housing Was at the Root of the Great Depression, Too
The U.S. economy slips into recession. The stock market takes a tumble as heady expectations for future growth cool. Interest rates fall as the Federal Reserve quickly trims the discount rate in hope of cushioning the business cycle.
The low interest rate environment sets off a massive wave of home construction and an asset bubble in real estate. By the time the Federal Reserve takes action, the boom is completely out of control. Bank balance sheets and household savings have become dependent on the profound mispricing of real estate and other equity holdings.
The heedless extent of leverage makes the financial system extremely vulnerable to capital losses. As the housing bubble implodes, it pushes the economy into a long, deep recession.
This is the economic story of the last decade — and of the 1920s.
Rest here…
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Whether the masses believe it or not, that was the practice run for their evil endgame plan we are all living right now. I like the title of Sheila Bairds new book…Bull By The Horns….that’s what we ALL need to do. The 47% need to join the rest of us and realize that money they are receiving is secure only as long as the 53% can still pay it. Under this administration it won’t be for very long. Then they will see this was all an evil plan to lead US into a totalitarian 21st century. It won’t just be rule by the rich anymore, it will be total control by the rich of everything. That is called totalitarianism, and no one will want to live under that.
Construction is and always has been the fastest way to end hard times. Nothing will hire more citizens, cause the sell of more products that need folks to make and harvest them than construction.
Good thing is that we have much that needs repairing in our America. Roads, bridges are just two. Federal and State buildings and properties too.
Why not kick this construction off now instead of waiting until so many that need repair are in even worse shape? It must be done, so why not now?
Borrow the money, do it, and all that are involved in any way will pay high taxes as they have not been paying none as there has been no work, which will more than pay back what is borrowed in quick time. Every Contractor knows how to do this type borrowing very well as its done successfully on every job they do.
Note: Give the money directly to the participating contractors, not the banks. Follow how the Federal Government pays contractors today. No banks involved. Try giving it to the construction companies that do the hiring and actually build or repair the needed works.
Don’t let the banks get between the money and the workers like before. Surely we have learned from that mistake!