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corysub -> RE: Media's Top 10 Worst Economic Myths of 2008 (1/2/2009 6:18:22 PM)
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Why do people keep talking about a "depression"? 93% plus of Americans are still working, the fed has pumped hundreds of billions of dollars into the system, just the opposite to what happened in the 1930's that deepened a bad recession into the depression. The banks are flooded with applications by
people to re-finance mortgages with rates now under 5%, the first step in making the consumer more liquid and secure in this environment. The great surprise to me as I go through a re-fi is that my house is was appraised at 10% "more"than what we paid for it three years ago! Unless you live in Cali, Nevada, Florida or the dying state of Michigan, I've got to think that most people who have been in their homes for a number of years are still way ahead
of the game in home value even if the market might be softer now than a year ago. In the interim, people are still paying big rents in the eastern cities and low mortgage rates could easily encourage a major reversal in real estate sales. I'm optimistic about 2009 with one major caveat....ie, the Obama stimulus package emphasis should be on programs to benefit the near term such as tax cuts...rather than pork laden infrastructure projects that did not work in the 1930's, and will go well above budget. I don't think you can trust the government to control any spending witness the hundreds of millions spent on a "visitor center" at the Capital.
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