Originally Posted by Istok

I was listening to a liberal radio talk show this morning and some economist claims we are bad off and lists the reasons: home values, foreclosure, jobs lost, dollar value, mortgage meltdown, dollar value, bla bla bla. All the same stuff everyone is complaining about. Now if you bought an overpriced home 1 year ago with nothing down what exactly did you lose? Logically speaking the prices will come down now that there is a greater supply of homes on the market. You lost your home now you will have to save and have a good down payment to buy the next home. What is the problem here, the market is at work. Oh yeah and now you cannot borrow against that house to spend on plasmas, German Ultimate Driving Machines and crap. Too bad.
The lady economist practically admitted that the drop in dollar value is a benefit to the US economy because now we export more. Oh and trips to Europe will be more expensive.
So without sounding rhetorical in my title, tell me what is so wrong with the economy other than we cannot borrow against our homes to buy imported gadgets?