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No More Negative News About The Economy
Posted
Monday, January 19, 2009
No matter if you are waiting news on TV or reading the news paper you are sure to see an article or broadcast about the economy. It is amazing how journalists can always find the negative in any story and tell it loud.
When the economy was going well and real estate prices were making millionaires out of regular home owners, the stories were about successful real estate investors. Now those real estate tycoons are holding paper with less zeros than when the millennium ball dropped in Time Square.
So the stories change to doom and gloom in our every day lives. Stories of home owners loosing their home to foreclosure. Stories of wall street millionaires cheating, stealing and lying to make a profit. Negative stories about the economy and the American reaction to loosing money and having a hard time feeding their family.
There comes a time in every market when it is out of equilibrium for one reason for another. Either more buyers than sellers, more demand than supply or a monopoly in the market. A free market like we have in the United States ensures equilibrium will always prevail. Supply and demand will always have a way of finding one another. Home builders will always quit building more houses if they have an excess supply.