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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Jim McMannis who wrote (150997)9/26/2008 5:35:09 PM
From: GraceZRead Replies (1) | Respond to of 306849
 
Well I think it is unlikely that dollars will be worth more in ten years than they are worth today.

In a serious washout cash is always King because anyone who has it can position themselves to pick up assets for pennies. That's not deflation, that's liquidation prices.

It would take a dislocation in the extreme to get Americans to switch back to a supply economy where declining prices are the norm from a demand economy where inflation is the norm.



To: Jim McMannis who wrote (150997)9/26/2008 5:35:36 PM
From: patron_anejo_por_favorRead Replies (1) | Respond to of 306849
 
Personally, I think you can always reflate, but odds are it won't get to where you want the dollars to go. Ergo, the Fed can do $100 B coupon passes weekly, but the banks won't be sabed. We would be paying fifteen Clownbux a gallon for gas, though.......and someone will get rich from it and spend more. Yay! Trickle down!<G> At least the CPI won't be negative.....



To: Jim McMannis who wrote (150997)9/26/2008 5:43:35 PM
From: PerspectiveRespond to of 306849
 
The occasional pangs of fear *I* get in my gut are that the Prechter armageddon scenario comes to fruition. I wouldn't give it any thought at all, except for the fact that humanity has demonstrated a remarkable knack for using any knowledge of history as a weapon to build even bigger catastrophes on successive cycles.

We learned that you can't have banks fail and destroy one's life savings, so we set up FDIC. Then we let Wall Street con-men talk us all into handing them our retirements. We learn not to co-mingle banking and investment banking, and then repeal it. Every time we build a safety net, some opportunistic segment of society figures out a way to move the tightrope higher and away from the net.

`BC