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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Mike Johnston who wrote (82248)	5/30/2007 7:25:09 PM
From: John Vosilla	Respond to of 110194

'To me dollar is already worthless.' But what is better cash in the bank at 5% or overleveraged, overpriced property with a 1.5% cap rate and 6% cost of capital? Yeah I know commercial RE is better than most residential at 3.5% cap rates<g> At this rate soon many public companies will go the later route as well if this keeps up. I guess what happens in the gateway cities such as NYC, Boston and SF the next few years with property prices, rents and yields as well as if the dollar convincingly breaks long term support at 82 will tell the true story of what happens to the rest of the country this next cycle.. This is looking more and more like a race between the bond bubble bursting tug of war versus cash is trash mentality..