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Friday, November 21, 2008

Whose fault is it?

Does it really matter to know whose fault it is or it would matter more to know: how will we come out of the recession?
Globalisation came and hit us all alluring us in the beginning, letting us hope that you didn't really need to produce when there was somebody else who produced for us and so much cheaper.
Why not just buying there and reselling here?
So, what went wrong?
It went on as long as Americans could pay swapping debts and selling them as gold.
Paying with money that was worth much less than what it looked, not because the dollar itself looses value, but because if you print too much of it, there magically comes the moment in which there are too many dollars and people begin to think they do not want to be paid in dollars, just to be safe, they want something that looks safer.
The prices of the houses went up and up as long as there was a buyer for them.
But when the request is smaller than the offer, it is a market rule that prices go down.
What partially saved Europe (and my country) is that first we do not have so much land pro capite, so that you cannot build more than a certain amount, and that makes prices more stable, second, and this is valid especially for my country, we have a lot of legal and ILLEGAL immigration.
That certainly means that the offer of houses is not (at this moment at least)superior to the demand.
Whose fault is it?
First of the people who just do not care. They go to vote, they delegate and they get angry if the delegates do not do what they were supposed to.
But we all know that when there is nobody who controls, well it is easy to go in the wrong direction...
So, let's put all faults together, because in the end it really doesn't matter who or what, it matters how we all come out.
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