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411man
October 21, 2010, 09:12
iDepression 2.0


http://www.zerohedge.com/article/guest-post-idepression-20



" .... The excessively low interest rates put in place by the Federal Reserve created a housing bubble that led to the “creation” of 1 million new construction jobs between 2002 and 2006. Of course, the bubble burst has led to the loss of 2 million construction jobs since 2007. What the myopic pundits on CNBC don’t realize, because they aren’t programmed to think, is that the Greenspan Housing Bubble “created” millions of other jobs that had no chance of being sustained. The number of realtors grew from 750,000 in 2000 to 1.3 million in 2006. We needed hundreds of thousands of new mortgage brokers and appraisers to falsify documents and not conduct proper due diligence. Wall Street needed to hire thousands of new MBA shysters to create fraudulent packages of toxic mortgages and the rating agencies needed to hire thousands of Burger King level thinkers to stamp AAA on the packages of toxic mortgages. These were just the direct jobs created by Easy Al. Home Depot, Lowes and a myriad of other home retailers built thousands of stores to service the needs of all these new “homeowners” and hired hundreds of thousands of clerks, installers, and cashiers. Once the delusion really got going, the “equity” from the homes generated jobs at car dealers, restaurants, cosmetic surgery centers, cruise lines, and yacht retailers.".

chrsdwns
October 22, 2010, 12:25
Sums things up pretty well.

alant
October 22, 2010, 19:20
A picture is worth more than a few words.

http://blog.builddirect.com/industryinsights/wp-content/uploads/2008/04/t2partnerspg61.jpg

There is an ongoing correction to bring prices back to the trend line. Sucks to be you if you bought high and got caught holding overpriced property.


Very much like the tech bubble.
http://wallstreetpit.com/wp-content/uploads/2010/09/image201.png


Is there too much money chasing too little of value, are investors just too greedy for their own good, or is someone manipulating the system to their advantage?

Stock Markets go thru cycles, both long and short.
http://www.marketoracle.co.uk/images/2010/Apr/stock-market-long-wave-14-2.jpg

So do civilizations:
http://www.arjaybooks.com/EthTech/Text/Ch1/Figure/figure1.2.GIF

Or maybe we'll just make ourselves superfluous:
http://upload.wikimedia.org/wikipedia/commons/7/71/PPTCountdowntoSingularityLog.jpg