On Thu, Apr 7, 2011 at 12:41 AM, Gruss Gott <[email protected]> wrote:
>
> All that money you (and all of us) made buying and selling homes
> starting in the 90s was actually borrowed money.

The housing bubble started in 2001. I had 20% for my home in 2001 and
went to pick one out and the prices went up 100k. I saved more and
checked again and they were up again  averaging $100k + a year

> You used all that money to buy all kinds of stuff and we built an
> entire economy around that flood of borrowed money (70% of our
> economy!).

Most of those people filed for bankruptcy and kept all their shiny toys.

> Now the borrowing has stopped, except by the Fed.  And soon enough
> they'll have to stop.  QE2 ends in June.

The lending has stopped.


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