Wednesday, July 1, 2009

Shadow Economy, As Home Prices Still Falling--So What?

On the other side of the coin, shouldn't houses be affordable? We can artificially inflate the prices of houses so people don't lose their equity, but as we bump up one segment the other unhealthy segments get boosted also. As we artificially adjust all value on all economic goods, how does the economy regain equilibrium through the normal supply and demand rules? How far will we go from "laissez-faire" to the government being so far stuck up our "drawers" that when we scratch our asses, we'll get a tax statement. Yes, I know! Lassez-faire is an old phrase that most hard working individuals always endeavored to live life under. The less government interference, the better off most of us will be. Pipe dream now!

What is it now? Four trillion dollars in debt we will have written ourselves just to 'artificially' push ourselves through this collapse? How can we possibly absorb this amount without raising taxes? From payroll taxes to bathroom tissue, the federal government will need to gather funds to pay off or rather, 'pay down' the debt load all Americans will continue to suffer.

As we try to keep Americans from losing value in their homes and property, aren't the provisions now being enacted artificial? Fake? Falsely held up under paper! Where's the control, truly? ... lakotahope

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