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

To: GST who wrote (91139)	2/2/2008 3:35:31 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

'But much of the deep discount property is deeply discounted for a reason -- because it is nearly worthless -- and that is not something to ignore.' Actually I think what is worthless is the perceived equity in overpriced property in places like Hawaii and San Francisco these days.. Those will take a very long time to adjust in real terms to true value perhaps 25-40% in nominal terms and 80% in real terms.. A blanket statement that property is almost worthless nationwide sounds like something a deflationist would say given in much of the country property is now way below replacement cost again and operating yields are near 10% with a cost of capital at 6% for those with good credit. Did property become worthless in third world countries when they experienced what we appear to be going through? Who do you think was the one true winner that had to live and invest at home when they were experiencing hyperinflation? We can talk nominal versus real gains all we want but I see few folks every come out ahead from the stock market ponzi scheme (never mind stay way ahead of inflation) which includes gold stocks as well. I certainly keep only a very small percentage of my net worth there these day.