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

To: THE ANT who wrote (91065)	1/30/2008 9:21:36 PM
From: John Vosilla	Respond to of 110194

Over the long term if this is truely a high inflation cycle housing should go up with gold just like the 70's. It will be real based on increasing wages, increasing costs to build, much higher rents and operating expenses. No where to hide as you constantly fight to keep up with rising costs. Housing bought at below market 20%+ at crash prices and leveraged at low fixed rate financing where rents easily support PITI far surpasses gold or (even the joke we call our junior gold miners) as a hedge and investment to protect yourself. Will the fed be able to cut it all off when they reflate by 40-50% and save the holders of all that bad paper? Should not long term rates be going up in a major way by then thus discounting the value of all those paper assets which were a big problem for the S&L's in the 1980's?