Posted on 03/21/2006 1:45:55 PM PST by Travis McGee
The tangled web is frayed.
We are all doomed to something and we don't know it...:)
[Hope can that be when there is no possible market arbitrage that is -- real estate has to be bought and sold where it is.]
I think it a stupid article regurgitating all the same stuff we always here when the American Economy is feasting. However, I did learn something and will think about and research it. How to trade realestate internationally?
Well, you would not sell and ship the realestate. However, consider this; If you take out a very low interest loan in a country whose enocomy is souring (Europe) and the value of their $$$ is dropping against the dollar, and you pay cash for a property in say the US which has an expectation of appreciation rate larger than the interest rate, what would happen? The property appreciates, you lease the property while you own it, and the sale of the property in say 5 years for US dollars allows you to clear some value after you repay the foreign loan. You make money on; 1) the property appreciation Vs. Interest 2) Hopefully the lease income pays the foreign loan 3) The value delta between the foreing currency and US currency after 5 years.
It's just brain puddy that leaked out, but I gotta research this. I never thunk it. It sounds cute.
"Doesn't that chart show 1929 as only around 140%, and the spike occurring during the depression?"
It does. And, considering the intending meaning of this chart in context, I suppose some people think the Great Depression was a "good" thing, since the deficit as a percentage of GDP declined.
That sounds a lot like J.M. Keynes philosophy, "in the long run, we're all dead." IOW, don't worry, let our grandchildren pay for our debts, we'll be dead, so who cares? Our grandchildren can deal with it, screw them, we'll be dead!
Someday one of these doomsday scenarios might come true. However, none have done so, at least since 1929-33. These scenarios are the economic equivalent of global warming. As someone said of a "hard money" advocate 25 years ago, "He has predicted 11 out of the last three recessions."
It was a play on Keynes' words, but it expresses an underlying truth. The Universe started with a Big Bang; it will end in a Big Crunch. In short, we're DOOMED!
I don't support fiat money. I support Ferrari money.
"He has predicted 11 out of the last three recessions."
Fuzzy math?
I'd prefer not to squander our legacy, and not hand our grandchildren lifetimes of poverty, trying to dig out of the hole we put them in.
Let them mock and laugh time will tell.
I hope their paper money keeps them warm and well fed
Yeah, and they were right. Unless you don't consider a 70% drop in tech-weighted 401Ks a disaster.
"and a have now a general US stock bubble that is yet to really pop. "
Yeah great grammar here - these guys cannot even conjugate a sentence and we are supposed to take their financial advice
Same for Carter. Trump once said on LKL that looking back, that late-70s period was not just a severe recession but a Second Depression.
And how did Carter fubar America? Suppressing ND as a fetish; choking off M1; and strangling growth through high interest rates.
Yoda has turned to financial advising. The gold side of the force recommends he, hmm.
Oh, sorry. Thought this was a thread about pizza.
Hundreds of people warned about the coming nazdog crash, and not many people listened. I know people who are still digging out from that bubble bust.
I have a neighbor who bought a bunch of property 5 years ago that abutts mine. He tried to subdivide and sell parcels. Few takers. I asked what he wanted for a couple of parcels abutting my western border. When he mentioned the price, I told him to give me call when he comes down from orbit.
Everyone wants to be an instant millionaire. I suspect I'll be buying his property - soon - at 25 to 30% of his asking price 5 years ago.
No, binary! He's 3 for 3 (or rather 11 for 11).
No, actually it isn't and all the revisionist history, you and others post, wont make it so!
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