Is the only solution to the depressed housing market and oil prices a recession?

Decreasing industrial output eases petroleum consumption (lessens demand) while a recession causes the fed to lower interest rates which allows consumers to absorb excess housing inventory.

Answer:
no the solution is to relax. Let time flow. The economy needs to adjust now and then. We do supply and demand shifts and say "See a new eqm at these new Q and P" but the reality the market must work to the new eqm. The current economic condition is ok. oil prices are high if we don't wcrew around with the economy we may actually be better off in the long run as alternative fuels are now priced in for development. Once the fixed costs of intial development is paid we may see an explosion alt fuel uses in the future. As for housing, there weren't a lot of complaints when the housing market was exploding, and exploding way to fast for past condtions. Short term markets fluctuations are that, short term. You build to much yesterday and at some point speculation is not going to carry the day, you got to sell them to people who want to live in them. Housing investors can not support long run housing growth without the underlying true demand.

So, let's all take a breath, relax. It is not that bad out there for most people.
The result is more likely to be a depression. This will cause political extremism, famine and nuclear war.
The housing market isn't depressed. I talked to it yesterday, and it is fine.
a recession would only make them more expensive. recession would crash the dollar.

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