Government policy has long forestalled a long overdue market correction, but it can’t forever, and by having postponed it for a long time, the fall will be much much worse.
The primary problem, in my mind being, that we can no longer have deflation, which is a key component of any true market economy
Good note to fall asleep on. I guess this will greatly impact the people on ARMs, or is this primarily a stocks/bonds problem? Thanks for the reply.
The primary problem is excess liquidity, and how to manage it. After the dot.com / stock market bubble, liquidity went to real estate and over speculation. There is more money in the market seeking returns which in turn leads to poor investments, such as 100% stated Investor Option ARMs and other such horrors like Bear Stearns products.
Deflation, putting the De in Depression. Yeah, that's what we need. LOL!