You are a classy guy TJ!!
And judging by Haim's response. There is great hope for the world.
in any case, an understanding for a proper frame of discussions would be a test of sort, because if we cannot do the right thing, then what hope is there for the broader world?,
Bravo to both of you!
On this statement
but if so, perhaps real income, real estate, real everything else will do even worse and real money will do best. there seems to be some historical foundation for such a state.
What is real money, in your definition, gold?
It is interesting to watch the changing valuation of things when the measurement of the thing valued, is in itself changing and the different "reason" put forth to explain it.
Having just been in London it is no mystery to me that the dollar/pound relationship is shifting. Lunch in London was running 2X+ times the cost in SE Florida, dinner 3X's. When I
told Brits they could buy a 1400 square foot house in a decent neighborhood for $120,000. (60,000 pounds at the time) their eyes grew wide in astonishment. A comparable house anywhere in the UK, forget London, would cost 3X that.
Interesting perhaps also, is that while I believe Hong Kong and to some extent Singapore properties have potentially unlimited demand, the asking prices are somewhat reflective of this. Certain parts of the USA (Florida for example) are bargain basement in comparison. Climate and infrastructure is similar. Yes, the US has taxes but there is no state tax in Florida and there are lots of tax advantages written into US tax law. This suggests to me a re balancing here too sooner or later. Certainly buying below replacement cost has a limited downside if nothing else.
regards,
R. |
