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

To: Skeeter Bug who wrote (258170)	7/2/2010 11:36:28 AM
From: DebtBomb	Read Replies (1) \| Respond to of 306849

Yeah, faber is wishy-washy short term....longer term dead on, IMO. Even Jimmy says that he himself is the worst market timer....me too. ;-) LOL. But, let's stop pretending....we're going into the greatest depression and Europe is far worse off....so the euro is probably toast and the eurozone break apart. That means deflationary depression for us. It's been like a 1930 sucker rally. Then....after the PIIGS and the euro are toast....smart money will move in there and buy everything up on the cheap....that's when the dollar gets it, IMO. So....we have both....deflation first....then inflation, IMHO. The trick is to beat them at their own game. How has one beat them at their own game over the last 10 years? Gold is up about 500% since then, and the Dow is down about 80% in gold. Why do you think they bash gold? Why do you think they call gold a bubble? Why do you think only crazy bears own gold? IMHO, gold is the only thing that's going to save our sorry azzes. No one even owns gold yet. I buy gold and hedge with shorts. Fiat currencies are failing. This debt can never be paid off. 10 months of stock market gains have now been wiped out....the sheeple have been maddof'ed IMO. Now the Dow is where it was March 1999. The first few months of this year....the snake-oil salesman screamed....the individual will come back in the market....and they did in April....then the crooks pulled the plug on them. It's criminal, IMO. But, it is what it is. I'll take the gold. Let the currencies collapse. ;-) Notice how the bull clowns are gone. They stopped coming here taunting folks. I don't even see how they can have any money left. Maybe they don't and maybe that's why SI is like a graveyard. I can tell you one thing as baby boomer....they aren't taking me down with their titanic and getting my money. I'm constantly preparing. Prepare for the worst and hope for the best. As long as wall street is more important than main street....we're going under, IMO.

To: Skeeter Bug who wrote (258170)	7/2/2010 2:25:06 PM
From: Perspective	Read Replies (2) \| Respond to of 306849

<the PEOPLE aren't getting the money. i think there is an argument the PEOPLE never will get the money, in which case zimbabwe can't happen here.> That's the critical difference. Inflation will only happen in the assets that are purchased by marginal dollars created by the Fed. They buy "investment grade" corporate toilet paper - voila, junk bonds soar. The government sets up "homebuyer assistance" - voila, house prices jump for a few months. If they start borrowing tons more money than they have been to build roads, expect asphalt and concrete to rise. But as long as they are giving the money to banksters who park it at the Fed to earn the spread, only banksters get rich, and they have little marginal propensity to spend (unless they chase oil or soybean futures ala 2007.) I like to think of things in limiting conditions. What would happen if you borrowed and monetized $1 trillion and gave it to one person? Actually, not much. That one person might like gold and bid the price up, or they might go after San Diego real estate and bid that up materially. But if you gave the $1 trillion as $3000 to every man, woman, and child in the U.S., you get a very different outcome, as much of that would be spent. Where the money enters the system is critical to whether or not it counteracts the deflationary forces. If it doesn't end up in the hands of the indebted, it does little to slow down the process. `BC