Quote:
Originally posted by Mike AI@May 25 2003, 11:47 AM
Quote:
2 more predictions:
The housing market and prices will crash
The dollar will continue to erode for another 1-2 years
|
Housing will stay strong ( except in those areas that have created huge bubbles - west coast, and east coast large cities) or at least stable as long as interest rates stay low.
Quote:
1 observation:
Bush has absolutely NO control over the value of the dollar in any lasting way. The market does.
|
He has more control then most think, he can start printing money left and right....
|
Mike,
Printing money has consequences, so does contracting the money supply. It is not a question of whether these tools are available (to the FED not Bush).
It is a question of do the markets have to follow the stimulus (or lack thereof)?
In the end, the market always wins. If your attempt is to do anything more than institute balance; if it is control and direction one is after, only futility lies ahead.
There is only one thing that can happen if the FED, policy makers, etc. try and exert too much influence... and that is to fuck it up.
We have been living in a disinflationary world since 1980. This is a very supportive environment for growth without inflation. Sooner or later, the cycle ends. Personally, I believe it ended in 1999.
Last edited by wig at May 25 2003, 04:15 PM