[quote=AN]
Also, you pointed out that in order to win the fed’s money printing game, I’d need to invest in the next bubble. I totally agree. Housing is one of those assets that will take full advantage of inflation. Even after this crash, many places are still higher than where they were in the mid 90s, much less 80s.[/quote]
I tend to disagree with this statement. Look at the stock market bubble in 2000. If you invested in stocks back in 1980’s or 1990’s you were still way up after the crash but new investors to the market in 2000 going forward would be extremely lucky to be beating CPI over the years even now when we’re approaching the 2008 highs. I think housing will follow that same pattern (it did play out in Japan that way where housing prices and stock prices have drifted lower over the past 20-30 years after those bubbles popped). The next bubble will likely not show up in the previous bubble.
I personally think we’re already seeing the next bubble in Treasury bonds/total debt, but I don’t know when it will end and I don’t know how it will end. I see hyperinflation or a deflationary depression as the end game but depending on how it plays out there might be a way to take advantage. Of course it’s certainly possible that even if you win the government will confiscate the winnings in the name of fairness.
