Forecast says double-dip recession is imminent

[yazdi]

Re: Forecast says double-dip recession is imminent

@Shamraz_Khan

^^^ its not a question of putting people in homes, but helping an industry. Housing industry in this country is huge & collapse of housing market is what casued this giant recession that is still having ripple effect around the world.

Giving loans to people who can not repay will make the financial sector go bankrupt. Exactly what happened in 2008. Without a viable financial sector you can not run any economy.

End of the day people/governments have to live within their means otherwise you will dry up the resources one day and there will be a collapse like the housing market collapse we have seen. The housing boom created by the speculators (due to unnatural resources which were being injected in this sector due to artificially low Greenspan interest rates) prior to 2008 made a lot of people very rich just because of the rise in prices. People leveraged themselves against the increased value of housing collaterals and spent this money to live way above their incomes/affordability.

True.. in the short term you can induce artificial demand to give a temporary boom to the industry.. with suicidal long term consequences..