Mike:
Thanks for the reference.
It appears, in the short run anyway, liquidity is all that matters? In my simple mind this is very unhealthy. It kind of reminds me of a giant ponzi scheme and God help the last guy in. It also, reminds me of the real estate market here in 1989. I was trying to buy myself at the time. Real estate brokers were telling people that at the current rate of appreciation a $200,000 house today would be worth $2,000,000 in 10 years. People were offering 5 - 10% over the asking price. Subdivision sales were by lottery. If you wanted to live the rest of your life on easy street, just buy real estate. In January of 1990 California real estate went into a death spiral that lasted eight years and a lot of people ended up upside down.
This stock market situation feels, to me, exactly like that California real estate bubble. Call me a fuddy duddy but 5.3% in a money market looks mighty handsome to me right now.
Thanks again,
Susan
P.S. I have a sister that lives in Niceville, near Destin. |
