Housing Doom

I think ‘junkie’ is the best description for the american consumer, and we definately need to go to rehab.

But instead of checking into the clinic and suffering the withdrawls, the fed has us all lining up at the methadone clinic and somehow think we’re getting better.

Igor is concerned, indeed. I think we need to add ‘relapse’ to his vocabulary, as well.

Very few junkies would listen to hard advises presented in this fashion. Reducing consumption is politically damaging to be spoken out loud, but it’s happening right now. People actually look at the house prices and stock accounts and decide to spend less recently.

You can tell by this video that Peter believes that people don’t get it. Well maybe people don’t get Macroeconomics, but I believe most people knows that we’ve been spending on borrowed money and it doesn’t seem to hurt much right now and everybody is doing it anyway.