When times are getting more turbulent, then it's more important than ever to get a better idea of how things work.
Centralized governments needs an external enemy, because the will never admit what they have done is the problem.
[. . .]
The only things that create a depression is basically when the bond market crashes and real estate, because everybody's more involved in real estate than in the stock market. So when real estate declines people spend less. [. . .] people will spend when they think their house is rising even though they haven't cashed it in. They feel it's more like a savings account so they spend more liberally and when the real estate goes down they don't spend like that they could. They save so this is pretty much what you're going to see. Real estate prices should go down, but it will be the foreign capital trying to come here both from Asia as well as from Europe that will provide some floor to the real estate prices.
Martin Armstrong
