Replies

To: EBH

OK, if the value of houses goes down 50% doesn’t that mean that the value of the dollar has gone up a corresponding amount?

2 posted on 03/17/2011 6:16:03 AM PDT by refermech

To: refermech

I am not sure how that works, but if the GSE’s lose 50% of their value....the taxpayer is on the hook to the investors.

3 posted on 03/17/2011 6:18:48 AM PDT by EBH ( Whether you eat your bread or see it vanish into a looter's stomach, is an absolute.)

To: refermech

PS...which I think would trigger them into printing more dollars to pay off the guarantee

4 posted on 03/17/2011 6:20:35 AM PDT by EBH ( Whether you eat your bread or see it vanish into a looter's stomach, is an absolute.)

To: refermech

OK, if the value of houses goes down 50% doesn’t that mean that the value of the dollar has gone up a corresponding amount?

No. That would occur if prices of all goods, and not just of housing, were to drop by 50%.

8 posted on 03/17/2011 8:38:53 AM PDT by TopQuark

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