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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (51951)	6/2/2006 2:29:25 AM
From: CalculatedRisk	Respond to of 116555

IRS Raps DAPs washingtonpost.com I always thought these DAPs (Downpayment Assistance Programs) were a scam. The seller would "donate" 3% plus a fee to a "charity". The charity would then give the 3% to a new homebuyer with no money - who would get a 97% LTV loan from the FHA. This was really a no money down deal since the seller would just charge 3% extra.

To: mishedlo who wrote (51951)	6/2/2006 1:39:44 PM
From: Incitatus	Read Replies (2) \| Respond to of 116555

Unfortunately at 18-1 or 20-1 wage differentials between the US and China/India the current account deficit can not be closed by currency changes unless one proposes that the US$ will fall 90%. The question then becomes "90% against what?" Is the RMB or YEN or anything else worth 90% more than the US$? If so why? Not to be petty... but if the USD falls 90% against X, X won't be worth "90% more than the US$." If it takes 10X to get 10USD and the dollar falls 90%, now it's 10X to get 1USD, so X is worth "ten times more than the US$." Or something like that. No?