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Great Depression of 2012?

1. The event is global.  This matter transcends the US though the US is a major player in this event.
2. Monetary discussion of the US bonds and dollar coupled with a massive loss of wealth in the last week creates a heightened sense of unease amongst US investors.  How will they react to the squeeze they will experience through interest rates?
3. The housing market will collapse.  It never did.  The prior years downward direction was merely a correction of bank lending. The interest rates on mortgages is still ARTIFICIALLY low and the market forces are going to dictate the 30 year mortgage returning to pre 9/11 rates of 8 to 8.5%.
4. Mortgage rates have historically moved up much faster than moving downwards.  During the 1980s the mortgage rates did move up 3 to 4 full points and we can expect this type of sudden move in 2011 and 2012.
5. A house in Staten Island pre 9/11 cost $150,000 and in Garden City a starter home could be bought for $365,000.  i believe we are returning to this type of market.
6. It will be logical that the 40 year low in mortgage rates correction to pre 9/11 interest rates will create a massive loss of wealth across the country and will certainly contribute to a new real estate market that will favor buyers.  However this loss of wealth is depressing hence the depression.
7. Intervention by the US will not change the loss of wealth that has continued as the US fails to create long term jobs for future college graduates and healthy factory jobs for blue collar workers ready and willing to return to US based factories.
8.The US has not recovered from the last recession.  This leaves the consumer vulnerable. The pending crash in home values will create a crisis for many retired homeowners living off of social security who will find it very painful to sell their homes at half of its current value.
A friend of mine from Canada said last week this generation is not ready and does not know how to survive such economic turmoil.  If the naysayers are wrong and we don't even go into a double dip recession I will be the first to rejoice and "pop bottles in the ice like a blizzard G6 Far East Movement Style.
Frankly I am tired of this bad economy and think both sides of the political spectrum must make changes to bring back the USA to prosperity.