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: John Vosilla who wrote (232690)	12/11/2009 9:11:29 PM
From: THE ANT	Read Replies (1) of 306849

John do you really believe this?Easy money doubled the value of assets(100% overvaluation as calculated by PE ratio, or average income to housing ratio, or as calculated by PIMCO pimco.com )It also brought forward consumption,raised GDP,and caused a tremendous misallocation of resources(finance and housing the latest)How can these guys save the day?They can hide our wealth loss by inflation and currency debasement(my Brazilian real estate is all up 4-100X in the last 10 years in $ and although I like practicing medicine I would proablly be beter off going down there to manage things than to stay here.Also Brazilian minmum wage now almost equals US minimum wage on a purchasing power basis),they can transfer who loses this wealth(puting the bankers loss on the taxpayer plate),they can drag a severe sharp drop out to a milder drop over 10-20 years (see Japan).What they can not do is recreate wealth that never truely existed!Not only is that wealth lost for ever,so is what I estimate to be a 1% loss in GDP growth a year for 30 years that these bubbles caused( 1950-1980 GDP growth average 3.5% and 1980-2006 GDP growth average3.0% a year and soon to drop closer to 2.5% when the last three years of this decade added in).If these guys become heroes it will put the finishing touch on two decades of the worse governance in the world outside of Venezuela and Zimbabwe.If housing does as well as you think for anyone below your level of expertise then look out below.Every single bank in Japan failed in the 1960's and the 70's were great years for Japan.Geithner and Bernanke have already failed us!All recent Presidents and the current one have failed us!Our Congress has failed us for at least 30 years and the current bunch are the slime of the earth!Do not let politics blind you to the facts PS-I agree with you on most other things,money will be made in real things like the airlines.Think 60's and 70's for investments

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