The Natural Order of the Cyclical Market

The Natural Order of the Cyclical Market

The moment you begin to interfere with Free Market Capitalism and manipulate the natural order of the market, in anyway, you no longer have Free Market Capitalism.

The Great Depression lasted for 16 years BECAUSE of the interference and the efforts to prop up prices and manipulate the Free Market.  Leave it alone.  Stop trying to control the effects from the causes that have been in the works for decades and let it fall to the bottom and correct itself so the market can quickly recover and begin to build itself up again.  You can never control "effects", you can only eliminate the cause to avoid those effects.  The more interference that is allowed in the free market, the greater the pain will be and the longer it will take to recover.  It's very, very simple.

C'mon.  There's a 1 Quadrillion Derivatives market beginning to explode, more than half of it is unregulated, to the tune of $575 Trillion with 10% in CDS' (62 Trillion).  Seriously, 1.5 Trillion of US funds (monopoly money that is being printed creating the future hyper-inflation that will swoop in to correct the flawed monetary policies of the Fed) will do what to this failing Quadrillion Derivatives market?  Nothing but bailout those at the TOP of the money pyramid.  There's a whole lot more selling to come to the detriment of everyone else!

And, as an experienced Real Estate Broker, if someone says "Who could have predicted this fall of the housing market?" (which I have heard many times), smack them upside the head because they are either a clueless idiot or a crook!  How could anyone NOT predict it?  It's a natural part of the cyclical market.  The higher the climb, the greater the fall.  Pretty simple.  Real Estate, like everything else, is cyclical.  Double digit percentage increases in housing prices of existing homes in a year's time or less?  Get real!  Eventually the explosion dissipates and you're left to deal with the effects of the explosion and what remains in it's wake.  It's the natural order of things and needs no further explanation.

How long will that Dixie cup hold all that water?  Sure you can keep placing it in a fresh new cup to keep it from leaking out but, realistically, how long will you keep doing that before you eventually realize that despite your continuous efforts to prevent the inevitable from happening, all the water has evaporated!  What a waste of precious resources, eh?  We'd all be better off if we left the worthless Dixie cup alone (bankruptcy) and allow someone who wants to save the water come in and rescue it with a glass (the sale of remaining assets by the courts to qualified purchasers).  They [purchasers] were smart enough to wisely use the appropriate methods of containing the precious resource in a container that is solid enough to withstand the tests of time and are well suited financially to move in and buy up what remains, salvage what is left of the precious resource and restructure the management to mirror the success that has positioned them to be where they are.  And the idiot using the Dixie cup?  Well, survival of the fittest - let them die.  Good riddance!

Laura/whereabouts