Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Real Man who wrote (27601)	3/23/2010 3:36:31 PM
From: gregor_us	9 Recommendations Read Replies (2) \| Respond to of 71477

I'm sure there are some bargains, and perhaps really cheap RE in tough neigborhoods is undervalued and maybe farmland is undervalued. The problem is that RE in the US no longer provides the claimant with a strategic position in which to get on a wage-growth path. If you think about it, the mortgage is essentially a call option on future wage growth. Once future wage growth no longer exists (like now) then houses may have to de-couple from mortgages--which is to say de-couple from credit. I used to ask this question way, way back and so did others: how much can you charge for houses in a world of scarce credit and now wage growth? Not much. G

To: Real Man who wrote (27601)	3/23/2010 3:44:45 PM
From: ggersh	3 Recommendations Read Replies (2) \| Respond to of 71477

Housing affordability at record 69%per/CNBC but it goes down to 39% if you adjust the price of Gas into the equation. Also 29% of all home purchases are made w/Cash. Housing can't do anything but go lower.IMO

To: Real Man who wrote (27601)	3/24/2010 8:27:38 AM
From: DebtBomb	Respond to of 71477

1 in 7 houses is now empty....we could get to 1 in 4 by 2012? Bargains? Yeah, well maybe, if you buy a farm. Farmers will be driving Lamborghinis, not stock brokers. ;-)

To: Real Man who wrote (27601)	3/24/2010 9:52:24 AM
From: ayn rand	1 Recommendation Read Replies (3) \| Respond to of 71477

Vi, i have a great deal for you!: "In 1994, the median sales price of a house in Detroit was about $41,000. The housing bubble pushed it up to about $98,000 in 2003. In March 2009, the price was $13,600. Today, the price is $7,000. There has never been a collapse of residential real estate values of this magnitude in peacetime history, anywhere. We are unfamiliar with anything like this. The media are silent. The Powers That Be are not interested in reporting on this, because readers might ask the obvious question: "How did this happen?" Obvious questions tend to lead to obvious answers. There is no surge of buyers to take advantage of fabulously low prices in Detroit. Can you imagine buying a home for cash for $13,600 in 2009 – a house that had sold for $98,000 six years earlier – and losing half your money? " lewrockwell.com