That is what I was speculating about in that post on virtuous vs. vicious cycles. Just a possibility
this assumes that all investing (of the proceeds of refinance of real estate) would go to unproductive ventures, and that there is near zero demand for housing... [which it is not the case and in certain markets the need for housing is real]
We might see something unusual for a couple of years, a slower economy and higher interest rates.
is that what the gurus call stagflation.... ? well...
i say... fear not and steam ahead at full blast! as nothing like common sense ought be your guiding beacon... and good old logic in how you structure your finances... i.e. secure healthy cash flow in its origin, then speculate only a % of one's own pie, and of course secure a strong balance sheet, namely do not be afraid of credit, provided is soundly used, create reserves so as to 'carry it' in case of trouble ahead... and keep equity percentages at healthy levels, no desperado moves...
if one truly carries the above to practice, within a disciplined frame, then only one can yearn for bubbles bursts, as it is while one BUYS that one makes the real dough... the rest... well cash flow will dictate, not wishful thinking...
the above sounds simple enough, yet surprisingly, only a few actually carry it out for real... if we as individuals are disciplined to behave under the guidelines of common sense... then we can only hope that our 'blessed leaders' would do the same...
of course that never happens, as we all well know, human nature is -in terms of mass behavior- defective at best. i.e. greedy, stupid and hopeless... -g
then... hey! let the fools trip over their own tongues, and let them speak of epic victories in the risky game of speculating foolishly... and orgies of theories as to why [oh why] we should spend like a hollywood bimbo with the income of a hobo
so one only hopes that the cries of depression, recession and any other imaginable demon will befall upon us so as to make possible the old prime directive to "buy low"
bring it on number one... [i mean... make it so number one, engage @ warp two] |
