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


To: Valuepro who wrote (260720)7/14/2010 4:48:13 PM
From: Elroy JetsonRespond to of 306849
 
As Fed continues ultra-low interest rate lending to banks over the next six to eight years, and banks use most of these loans to buy U.S. Treasury debt, the only "inflation" you'll notice is less rapid price deflation.

In other words Dollars will become more valuable, but Dollar appreciation will be tempered by Fed lending.

The Dollar price of hard assets like gold, copper, real estate may not decline, or may not decline as dramatically as they would have without Fed lending to the banking system.

Incomes and wages will remain level or decline as private debts are liquidated, bring our economy's debt-to-income ratio back down to sustainable levels.

If you lose your job, or your investments lose value, the declining Dollar cost of food and necessities will seem shockingly expensive. If you have savings and or keep your job, you'll appreciate declining prices and consider hiring additional domestic servants.
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