The real question is ... Did he pay cash or sign a mortgage to repay the loan in US Dollars?
This purchase be compatible with his Dr. Doom’s views. Inflation is too much money chasing too few goods. Hyperinflation is everybody scrambling to dump a currency into something which can store value; gold, food, condos. Some of the reasons we’re not seeing Jimmy Carter style inflation now is that the Fed has the currency safety valve, the interest rate, tied down in the off position. If you’ll recall, Jimmy Carter added 13% to the money supply and that was countered by 20% interest rates for about 3 years. But this Fed is not independent and is working hand in glove with Obama and keeping the interest rate down despite adding an estimated 200% to the money supply.
Us consumers aren’t seeing hyperinflation because we, the public, are panicked over the future so we’re holding onto our money. It doesn’t matter how few Chinese made 55 inch plasma TV’s are in the store if you’re afraid you won’t have a job soon. Hence, very little apparent inflation. So, Dr. Doom is right to buy a well located apartment. When he sells it in three years, he may get $20 million new dollars for it. (The New Dollar will feature portraits of Democratic politicians.)
I think we’re at an interim “bottom” in the real estate market right now. I say interim, because another leg up in U-6 unemployment will chip away at more homeowners on precipice of mortgage default, and force prices downward again as people try to make geographic changes in order to find work.
Right now, it looks like buying real estate for rental purposes is at the point of profitability. That is the main demand in real estate now. Investors are starting to come in and make dough leasing out homes to young couples who have decent credit ratings but don’t have down payment money for a mortgage, and folks relocating to find work.
My 25 year old son came into $10,000 recently and he asked me where I thought he should put the money in light of the current business environment.
I told him that if it were my money, I would take it and buy some asset that would have some value no matter what, and at the same time, it should be something that would be very dear to me, now and in the future. As my son makes beer, I suggested maybe taking the money and buying equipment or inventory he didn’t think he was ready to purchase yet.
He wondered if it wouldn’t be better to save the money for a rainy day or some sudden emergency. I told him that QE1 already made that 10K worth less than it was before he got it. QE2 made it worth even less. There is no telling yet how much erosion we will see to the dollar.
Bottom Line: Spend the money while you can still buy something tangible with it. If I had $5 mil laying around, I would have bought the condo too. If it was dear enough to me.
This dour faced doom and gloomster is a notorious party animal. He’s laying out the big money to impress the babes. As I remember his last pad had some avant garde porno art embedded into its walls.
Don’t think he bought it to “flip”. He bought because he can. He finally made it to the top....until next time.
Quoted from Wikipedia.
He is a globalist. And a Muslim. Born in Turkey. Who funded his very fancy education, and how did he end up "spending some time" at the Federal Reserve? These people just amaze me. And we are the target country they all want to see subjugated to Sharia law.