"Canuck57" wrote in message
...


Insightful. It is really called deflation. The opposite of inflation.
With the market loosing so much value, people losing jobs, the prices
people will pay is going with it. The right "sustainable" price for oil
would be about $70-85 barrel.

Sounds good at first glance, but it is in reality a sure sign of
depression. It means that homes will further decrease in value and even
more people will "walk away" from their debts. In effect, the US economy
value is equalizing to India, China, South America...

This will lead to total collapse as how does the US government pay for a
12 trillion debt in an outright stalled economy? Government prints money
like a crack junky shoots dope.

Add the insatiable spend-crazy lust for governments to bail out companies
like GM and the banks paints a bleak picture for the US economy. Very
bleak indeed. Every time the government announces a bail out we get a
market tumble.


Good post. You seem to have a handle on the economics of this mess.

Eisboch