The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Real Man who wrote (27601)	3/23/2010 3:36:31 PM
From: gregor_us	9 Recommendations Read Replies (2) of 71477

I'm sure there are some bargains, and perhaps really cheap RE in tough neigborhoods is undervalued and maybe farmland is undervalued. The problem is that RE in the US no longer provides the claimant with a strategic position in which to get on a wage-growth path. If you think about it, the mortgage is essentially a call option on future wage growth. Once future wage growth no longer exists (like now) then houses may have to de-couple from mortgages--which is to say de-couple from credit. I used to ask this question way, way back and so did others: how much can you charge for houses in a world of scarce credit and now wage growth? Not much. G

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