Socialism cannot compete!

Three Reasons for Bear - Fast Money Recap (10/15/08)

Angell is an idiot!!:

"He explained we can't survive deflation in house prices on top of a decline in equity prices."

Sorry Wayne...but over-inflated housing prices are a big part of the problem! We *need* them to deflate, in order for buyers to come into the market!! I waited to buy...and am still waiting. I *saw* that prices were bubbling. Do you think I'm going to step in now, with the government and idiots like you talking about using artificial means to prop prices up???

Let's cut to the core here: there are reasons why home prices are overinflated, and it's not just banker greed, or greed by those flipping houses. We have a population that is heavy to the "boomer" segment -- they have now reached a point in their lives where they are selling second homes...downsizing a bit in prep for retirement. That is being overlooked. The boomer population is also at the heart of the medicare & S.S. funding crises...and will be a tax revenue problem in general...because the government will soon be paying all kinds of *entitlement* and providing *services* to a large group of people with a much smaller base supporting it all...and the government will never trim back to any significant degree, while those boomers are still voting. *THAT* is the problem with ever having gotten onto a socialist, entitlement path to begin with!! It also underscores the grave error of our birth-control, anti-population mentality!! We'd have millions more in the work-force right now if it weren't for that immoral, fallacious thinking. The chickens are coming home to roost in all these respects.

It is clear that any efforts to prop up home pricing in the face of such significant demographic shifts are doomed to failure, and will only result in creation of another artificial bubble at the expense of taxpayers. This bailout is setting up for an even harder fall...and sooner or later, the people will have had enough and there will be another Tea Party.