MONEY from thin air it comes and goes.

[Neubarth]

People are worried about the Fed creating all that money. Do they sometimes wonder about all the money that disappeared in the past three years? Where did all these Trillions go?

 

[Neubarth]

In late 2009, former Merrill Lynch economist Rosenberg said the following:

"The credit collapse and the accompanying deflation and overcapacity are going to drive the economy and financial markets in 2010. We have said this repeatedly that this recession is really a depression because the (post-WW II) recessions were merely small backward steps in an inventory cycle but in the context of expanding credit. Whereas now, we are in a prolonged period of credit contraction, especially as it relates to households and small businesses."

Summarizing his 2010 outlook, Rosenberg highlighted asset deflation and credit contraction imploding "the largest balance sheet in the world - the US household sector" in the amount of "an epic $12 trillion of lost net worth, a degree of trauma we have never seen before," even after the equity bear market rally and "tenuous" housing recovery likely to be short-lived and illusory with a true bottom many months away.

 

[Neubarth]

Long Way To Go For Bottom Of Home Prices

Home prices were down nearly 20% at the end of last year, according to two new reports. But there is plenty of further room to fall, say economists who forecast where the housing market is headed. The median sales price of existing homes fell to $175,400 in December, down 15.3% from a year earlier, according to the National Association of Realtors (NAR). And the S&P/Case-Shiller index shows that home prices in 20 cities fell 18.2% in November compared with the year before. Both measures make houses about as expensive as they were in 2004.

And we're probably not done yet. "Our outlook is that home prices will continue to fall, bottoming by the end of this year, but it won't be until the end of 2010, maybe even 2011, that we'll see steady price gains," says Celia Chen, an economist at Moody's Economy.com. Chen and her colleagues predict that home prices, as measured by Case-Shiller, are due to drop some 30% from their early-2006 peak. We're only about two-thirds of the way there.

Housing Prices Keep Dropping. And They're Not Done Yet - TIME

 

[Neubarth]

People are worried about the Fed creating all that money. Do they sometimes wonder about all the money that disappeared in the past three years? Where did all these Trillions go?

Twenty trillion or more lost. That is money that is no longer there to fuel expansion. Nothing is being done as the economy continues to tank.

 

[andy753]

Come on now, do you actually think NOTHING is being done to change the way the economy is going? Seriously?

 

[Neubarth]

Come on now, do you actually think NOTHING is being done to change the way the economy is going? Seriously?

Putting people back to work will stop this horrific Depression. What has Obama done to put people back to work? Where outside of Government hiring has Obama stimulated the economy in such a way that millions of jobs have been created? I know we have seen all of the lies about job creation, but when we look, we see that nothing positive has been done. It is all smoke and mirrors and should come tumbling down shortly.