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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (4749)	3/9/2008 2:01:55 PM
From: Tommaso	Read Replies (1) \| Respond to of 71409

>>> 'If our food expenses would double, it wouldn't make a big impact on our economy. However, if our house or transport expenses would double, we wouldn't be able to afford to eat ;-)' <<, I know you are quoting from another message. All I can say is that there are going to be some very skinny people in some very fat vehicles. I imagine an emaciated corpse with hands locked on the steering wheel of a Hummer.

To: John Vosilla who wrote (4749)	3/9/2008 3:37:34 PM
From: dybdahl	Read Replies (1) \| Respond to of 71409

I don't believe in a 50% drop in house prices here. We didn't have as large a bubble, and a lot of people still want to move into a bigger house. When we started to pay off our huge trade deficit and national deficit in the 1980s, house prices did drop a lot. The result was, that some people went for bankruptcy, of course, but the main result was that many people were stuck with the house they had. Anyway, I just ran over this chart, showing Denmark's net assets as percentage of GNP in blue: As you can see, we had a serious debt, and the cure was: - Increased taxes in order to reduce consumption - Changing the symmetric tax system on debts to become assymetric, favoring savings and punishing loans - Ultra-stable, transparent and predictable economic policies - We found some oil This cure may not be the right one for USA. Here is an interesting one, it shows the P/E ratio for USA: This chart is from a Danish report from 2004, that predicts major problems in world economy: djoef.dk Here is one that shows nominal and real house prices for Denmark, UK, Spain and USA: "Real house prices" means inflation adjusted. Here is a curve that shows house prices relative to the costs of building houses, in Denmark: My guess is, that this index is not much above 1 today.