Quote:
Originally Posted by 4RE KLR
America is in the toilet from buying from every other country on the planet, right? The economy will continue to free fall, until Americans get PISSED OFF and stop buying crap made in other countries. That will bring the buyers back to American made products.
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Steve I think you are a little off base, IMHO. All of this meltdown is due to the housing market that was overheated. When the prices of housing fell (the bubble burst), tons of people were in the negative equity due to the stupid loans that Fanny and Freddy were giving out like candy (interest only, sub-prime, adj rate, etc). So the people (who would never had gotten a home loan 20 years ago) were defaulting on their loans that were being created by stupid congressional interference in the mortgage business, associations like ACORN and others that forced (strong-armed) many banks into making these stupid loans, and many greedy people at high levels. So the banks started hemorrhaging as defaults mounted. The extremely risky mortgage derivatives that were bundled and sold to big investment banks went into the crapper. Its very complicated, but it has very very little to do with imported goods.
All of this free-fall is due to about 3 to 5% of the mortgages going into default.
The only thing that will fix this problem is the "free market system" and time. Of course, with Obama as President, the time to recovery will be increased dramatically.