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

To: Elroy Jetson who wrote (19646)	4/12/2009 9:00:31 PM
From: Skeeter Bug	8 Recommendations Read Replies (1) \| Respond to of 71424

Elroy, here is the problem... housing is over valued. note the period. in order to stabilize the price at current inflated prices, you have to do some kind of damage to other sections of the economy. you can't just support housing at unrealistic prices any more than you can just support unrealistic tulip prices. the future is unknown, but what i see happening is the government printing money out of nothing at a time when production of commodities is being cut. i also see america as a fiscal basket case - we'll never pay our debt and this is obvious. as the government devalues the dollar in an attempt to stabilize absurd home price levels, those who loan us money will be less likely to do so - and this comes at a time when our demand for money is skyrocketing and our tax receipts are collapsing. so we print some more money to run government. the more we print, the less we get lent, the more we print... you get the idea - it is a vicious cycle until we are printing to fund government. either this happens or else the folks in government get fiscally sober very quickly. if that's a bet you want to take, good luck - i hope you are right.