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

To: TH who wrote (43436)	10/3/2011 6:17:43 AM
From: yard_man	1 Recommendation Respond to of 119360

I know we are not Japan, TH -- but think about what folks over there must have thought in the initial stages of the crash over there -- especially regarding yields on government debt ... Right now we have this carry with China and how does it unwind, except very slowly. I am not sure how, in a depression it does unwind quickly. There needs to be a sink -- a demand for funds elsewhere. Bonds can blow out in smaller countries in Europe as hot money loses confidence ... all I am saying when I say king -- is that we aren't anything like those countries on the world stage ... looking for a near term massive devaluation of the dollar versus other currencies is looking in the wrong direction right now, I think. More like we are in for a period of dollar strength versus other world currencies as the whole world continues to slide into depression brought on by the credit bubble. The only thing I see changing it is a huge or rapid collapse in China. Somehow it doesn't seem far that Ben can print into a collapse without the consequence that all have been calling for -- but think of it this way -- what would it have been like if he simply shut the spigot. He's gotten nothing in the way of real economic activity -- quite the reverse -- he's deepened and prolonged the recession/depression and now he is having difficulty doing the one thing he thought would inspire confidence: floating the specific assets that he has targeted.