Monday, May 09, 2005

Making things down, pound down

But looks like house prices might be going up in a while. Witness the yin and yang inherent in the system!

However is there also a chance that these tensions, coupled with factors such as rising bankruptcy, and while keeping themselves "stable" through opposite force, could actually both indicate and obscure a more long term problem? Just as, say, war and global demand fluctuations may shove the price of oil around in the short term but do nothing to address it in the long term*, is it at all plausible that an interest rate that underpins the cross-stability between business investment and consumer investment will only hold for so long? ANd if so, what happens when it breaks?

* Side thought: When direct solar power becomes our main source of energy, will we be fighting over land that gets more Sun time? :)

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