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Strategies & Market Trends : SiliconInvestor All Stars Forum

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To: Real Man who wrote (1508)11/6/2007 8:13:43 PM
From: John Vosilla of 1718
 
'We are witnessing a very rapid dollar drop now. When you see
an associated TYX spike higher, run away from every playground. Not
yet, and if it does not spike up, I believe, even housing could
be dragged up by falling dollar'

Well if this keeps up another 3-4 years along with what I believe will be a depression in new home construction during that period then yes housing will stage a dramatic turnaround and start moving up similar to the late 1970's.. The further the US attempts to monetize the back end of the yield curve the more our main trading partners will need to do it on their end to prop up the dollar.. Theoretically if all are doing it then gold and hard assets would be the major beneficiaries in a parallel universe of no major ramification from excess money creation with globalization continuing in a low interest rate world.. Perhaps farfetched but who knows<g>

Yes head for the hills if long term rates skyrocket before this housing/credit armageddon is completely played out..
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