Danzig and Pgardn, obviously I hope you're both right and I'm wrong- I don't want an economic tailspin any more than anyone else. But looking over the past 50 years, it seems that in most every major field, energy, food, etc., we've been paying far less than the actual costs of things. And at some point that has to come due. We were protected before by a lack of globalization and the fact that large population nations like China, India etc., were so far behind us, economically and developmentally. They're not so far behind anymore, and they're not going back- our portion of the world GNP is shrinking, and it's going to keep shrinking, simply because they've become more productive. And we've not put enough money into our own infrastructure and we're starting to see the effects of that.
If the rest of the world wasn't coming up so fast I would think we might have time to right what we've been doing wrong and still be the top economic power, but I think we're seeing the end of empire. Again, though, very much hope you're right and I'm wrong.
Danzig, I think you're right, too, that the gov't will bail out these companies and their predatory lending practices. Or rather, you and I will be bailing them out, as it's our money the government will take to do it. And while I agree about people needing to take responsibility for their actions, in the case of the sub-prime loans, I think much of the responsibility falls on the companies- persuading people of the value of something to the extent that you make them let go of their common sense is the trade of the huckster and the swindler, and it's why we have anti-fraud laws.
But of course, we've all merrily bought our cheap food and our cheap gas for years, without thinking anything of it, so maybe it's no surprise we would also expect cheap housing.
And yeah, pgardn, I do think a lot of people will figure out how to make money out of the current situation; I'm just not sure how yet. But, in the meantime, I'll continue to stay out of debt and put money towards retirement (though I am looking at moving more of my money into mutual funds focused on the international market. Though I'm the genius who got into the market just about at its peak in 2000. D'oh! I did benefit from continuing to invest during the low years right after, so yay for dollar-cost averaging.)
PS- Morty, I am, as always, flattered by your obsession with me. I hope things are okay with you, though. While, judging from most of the posts of yours I've read, I understand you dislike women, that's okay with me- hey, I dislike raisins (though the difference between us being that I will, on occasion, eat a raisin.
). We can't all like everything. But previously, your posts were often amusing enough to more than make up for the vitriol. Sadly, now, they seem more angry than anything else- your most recent post is, I believe, the first one that expressed a wish I would die in an accident (unless you've posted that earlier; I confess my reading of your posts has dropped off lately). I do hope whatever is going on in your life works itself out soon. I'll play the National Anthem for you if that will help.