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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (67788)	12/1/2006 8:23:07 AM
From: Think4Yourself	Respond to of 306849

Your gold vs oil argument makes sense. Gold for the sake of gold is pretty worthless. There is limited supply but limited uses as well, and if the economy tanks the manufacturing demand for gold will tank too. Oil is different. There is a somewhat limited supply but people pretty much HAVE to use it. Once used it can't be recycled so supply will continue to decline over time making it more valuable. Demand worldwide is also increasing rapidly, with no end in sight. There is one factor arguing against investing in energy and that is power generation. People are replacing Televisions using hundreds of watts (CRT TV's) with Televisions using a small fraction of that power (LCD). Same goes for Lighting (Incandescent => compact Flourescent) and computers (desktop => notebook). IMO investing in anything related to power generation is a bad idea for the forseeable future.

To: ChanceIs who wrote (67788)	12/1/2006 8:43:26 AM
From: Dan3	Read Replies (1) \| Respond to of 306849

Re: A weak dollar may be Americans' currency, but it is our trading partners' problem. A dynamic variation on "if you owe the bank $100,000 and can't pay, you have a problem, if you owe the bank $100,000,000 and can't pay, the bank has a problem." This was all going along well until the repubs started transferring so much wealth to the top ~2% of the population. The "consuming classes" are reaching the limits of what even companies like Providian will loan them and monetary velocity is at risk of slowing down as more currency falls into bonds that don't support real investment. If those re-patriated dollars don't get into the hands of people who can spend them, demand will slow, regardless. The FED's been dumping dollars back into the market, but all it's been doing is depressing lond term rates - you can't push with a string. newyorkfed.org