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Leave the ocean of the economy alone

February 18th, 2009 OAL Leave a comment Go to comments

This “stimulus” package is like attempting to stop the waves of an earthquake-created tsunami by dropping boulders into the ocean. THERE ARE WAVES COMING!!! SOMETHING HAS TO BE DONE!!! If we just drop boulders in, creating equal size waves, the waves will collide and return the ocean back to normal. Has everyone gone insane?

When a tsunami is approaching, you don’t try to stop it. You take cover and wait for the sea level to even back out. The economy is NO DIFFERENT.

LEAVE THE ECONOMY ALONE. It will return to equilibrium on its own without our so-called “help.”

Are you skeptical about the economy fixing itself? Why? Basic economics explains it. Look at it this way… what is the value of a house? It doesn’t matter which house, any house. The value of a house, or market value, is simply the “highest price a ready, willing, and able real estate buyer will pay and the lowest price a real estate seller will accept.” We understand that can change drastically in a short period of time, but it won’t go to zero. At worse, the house is worth the materials that it is made of. When prices decrease, there will be a higher demand for those prices, so renters will start buying the foreclosures, and the market will stablize. I actually know this first hand, having bought my first house in December. I bought it for 33% less than its peak value 3 years ago.

Just calm down. This myth that “something has to be done” implies that action is better than nothing.

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