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Non-Tech : Deflation -- Ignore unavailable to you. Want to Upgrade?

To: JF Quinnelly who wrote (361)	9/25/2007 5:21:14 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 621

jfred, thanks for that, and yes, the dreaded DEFLATION mythical monster was mentioned. More as a possibility, as a rearguard action, until political pressure builds to turn on the spigots. So far though, we are nearly 2 years into the market clearing process of housing in the USA since the peak. That is quite a chunk of time. Yes, things are just warming up, but I get the impression that a lot of homeowners will be evicted and the rest of the population won't care as long as they are okay themselves. Plenty of people are no doubt rubbing their hands with glee at the prospect of acquiring a housing portfolio to rent to tenants. They'll have to bid against each other. I am hoping for some bargains. I'm not optimistic. But just a couple of months ago, we [Tarken-san] and I were eyeing up Japanese houses, which in NZ$ were very cheap and even in yen they were very cheap. Then the NZ$ took a plunge and the bargains became merely good buys. Meanwhile, the Canadian dollar is worth the same as the US$. That's a first for over 30 years. Japan got 17 years of deflation, with houses and the Nikkei still way down despite years, decades, centuries and millennia of dilution of the currency. Nikkei still at less than half price. Japan had a very large global economy to lean on. The USA is huge and when the US$ wants to lean on somebody for support, they'll crush them with their enormous body mass index. So there's potential for a LOT of fun. Mqurice