Economic Death Spiral?

[airboy]

I agree with what Detroit is doing.  But Detroit had its peak population in the mid-1950s.

What is irksome is perfectly useful housing that got tied up in an Alice-in-Wonderland regulatory web spun by the Obama adminstration.  Lenders could not get their money, could not evict, and could not sell foreclosed property.  Homes stayed vacant for years and were damaged or destroyed by vandals or simple entropy. 

If you contrast that with the last big US housing crisis (S&L meltdown of the late 1980s) it is shocking how Obama did not let the housing market clear which eventually led to the unintended destruction of a large amount of otherwise useful housing stock.

[LongBlade]

Hey Airboy,

Any chance this is on your radar? http://www.zerohedge.com/news/how-chinas-rehypothecated-ghost-steel-just-vaporized-and-what-means-world-economy

Thoughts?

[Mr. Bigglesworth]

European workers stage austerity protests
General strikes in Spain and Portugal halted transport, businesses and schools and led to clashes between police and protesters in Madrid.
Smaller strikes were reported in Greece, Italy and Belgium, and rallies were planned in other countries.
http://www.bbc.co.uk/news/world-europe-20320993
What exactly is a strike against austerity supposed to achieve? "Give me Liberty Credit or give me death." is the new stupid.

[LongBlade]

What exactly is a strike against austerity supposed to achieve? "Give me Liberty Credit or give me death." is the new stupid.

Agreed. Those cuts are painful. TANSTAAFL, as Heinlein would say.