Saturday, March 07, 2009

Tent Cities Springing up in CA

Anyone remember the Grapes of Wrath? Tent cities are springing up around California. I would expect this to continue as foreclosures continue there and across the country. This is the result of not letting prices adjust to a natural level. Wages and prices need to fall to accommodate full employment. If prices stay elevated through money creation and capital destruction, this will take a long time and we will see many more of these tent cities in the near future.

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