Originally Posted By: GROUCHO MARX
Did the presses ever stop?
No, and that is the point! It's how our monetary system works.
We're heading for a massive deflationary collapse that should have happened 10 years ago. The banks, the FED, the government can try with all it's might to stop it, but it's a mathematical inevitability that our economy will go through mass de-leveraging. And it's starting, or maybe a better term is, speeding up, in the real estate market. Seriously, this isn't rocket science. When median home prices become out of reach for median income workers (and they're still grossly miss matched, even after the collapse in 2008), the system is at a half centuries level of out of balance.
http://www.businessinsider.com/another-housing-collapse-is-coming-soon-2012-5
"Let’s put this housing credit bubble and collapse in historical perspective. Prior to this disaster, the largest bubble and collapse in American history was the U.S. stock market from 1927 to 1932. Most of you probably don’t know that during that stock market boom, you could buy stocks with only 10 percent down. Brokers would lend you up to 90 percent of the price. Sounds like the housing bubble, doesn’t it?"
When real wages peaked in the 1980s, that is when the current historical debt bubble started inflating. All the growth over the last 30 years was from consumer driven debt spending. It has to pop and deflate, especially in home prices.