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

To: John Vosilla who wrote (91061)	1/30/2008 4:15:34 PM
From: NOW	Respond to of 110194

a side issue???

To: John Vosilla who wrote (91061)	1/30/2008 4:35:00 PM
From: THE ANT	Read Replies (3) \| Respond to of 110194

John, I think they want to inflate us into our houses and not an iota above this.Until houses at least stop falling we may see inflation in many things including gold,but beware when housing goes up by much.By this time we will have been inflated out of a good deal of debt and the banks an insurers will be OK.Just because Ben is using a helicopter now doesnt mean he will not fight inflation when he can afford to do so.I think even the Fed can see their mistakes.In todays world a country gets wealthy by saving(and education and technology)and not by spending.There will be a time to get out of gold,and I think only real estate experts will make much money in real estate in the next 20 years(unless you tell us what to do)

To: John Vosilla who wrote (91061)	1/30/2008 5:10:50 PM
From: GST	Read Replies (1) \| Respond to of 110194

Housing prices definitely do not have to go up in an inflationary cycle -- that depends on its attractiveness as an asset class, and right now it is very, very, very low in attractiveness. Other asset classes, like precious metals, can soar to the stratosphere while housing stagnates. If you see it as assets versus income and expenses it gets a little bit more clear. Housing is an unattractive hedge against inflation right now and is likely to stay that way for a long time. But that does not mean there will not be scorching hot inflation -- it just means you had better find a better hedge. Housing is a traditional hedge, and that is what leads to the assumption that inflation must be tied to housing -- but it is simply wrong to think that way -- there is no necessary connection. Housing is merely a hedge -- and right now it is not an effective one.