The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Tommaso who wrote (98907)	1/4/2008 7:50:35 AM
From: Box-By-The-Riviera™	Read Replies (1) of 306849

when what is purchased is either leveraged yet again ad infinitum or pruduces nothing: on those two counts alone, he is quite right. secondly when core money is magnified beyond recognition, the long ago and forgotton orginal value becomes nothing, and even less than nothing when it fails to serve its original purpose, the cornerstone of the magnification. on this point, he is also quite right. when the expansion becomes dependent upon feeding the above, and then suddenly everyone goes on a diet, on this point he is quite right as well. and when all this occurs and wipes out everything templeton achieved with his original loan, then yet again, he is quite right. unless of course templeton bought gold and grains to hedge his position. (for now). end of story. why? because you are seeiing the story right now unfold before your very eyes. leverage, in the end in this case, is a capital killer bar none. the search has already begun for capital. there isn't enough of it to go around. banks are selling themselves at 20% a pop could not be a better example.

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