patrick.net

nostromo426 says

Some day all citizens of the world will realize that wealth = MANUFACTURING

wealth is a sloppy term that can mean many things.

At its purest it is the state of being well.

The next step is goods that satisfy wants and needs, stuff that makes us "well".

Then it is is the capital skills and goods that assist in this production of wealth.

Then it is the money and financial instruments that we exchange for wealth.

At any rate, manufacturing is in fact a core wealth-creating activity. But if Chinese are willing to work for peanuts, theory says we should let them.

But modern theory is kinda silent on what to do in the face of massive trade deficits. Mercantilist theory says we're getting screwed.

People keep reading how there is a huge shadow inventory of houses that will be foreclosed, which will drive down prices.
People remember how realtors and other pimps lied to them and tricked them.
People remember seeing how much money their friends lost on real estate.
As interest rates inevitably rise, houses prices will fall some more.
But, you never know what people will do with their money, people are fickle, this is shown over and over.
Logically, people would buy stocks since the stock represents a piece of profit of a business. Owning Apple, Exxon, Verizon, etc. stock means you have a claim of a portion of their profits.
Owning a house means you have paid off the mortgage. Until you own it, you are renting the money to keep the house in your name. Stop paying the interest on that money for a short time and it's all taken away.
Stocks rock for the long run. But, hot women don't like rubbing themselves all over my Vanguard statements, they like sitting in houses, cars, and restaurants, paid for by us.

Iwig aren't you the one here who constantly preaches living beyond the means by burdening our children with more debt. I wonder if you even care.

Troy, I suggest "ignore"