Poway writes: RightSide, as the Fed is printing money to pay off the debt, and simultaneously raises interest rates to control inflation, what would be the outcome?
I think that is the key question. I just don’t know and I think using past examples of how this plays out is risky, because there are so many things different this time around.
My plan is to keep an open mind to all points of view and not get stuck on any one conclusion. Personally, I have found that most people who lose money investing do so because they become emotionally involved in their decisions and let their egos take over. There is a great book that just came out called “Mean Markets and Lizard Brains” on this subject.
I do believe that evidence points to a “day of reckoning” at some point in our near future and I’m planning to profit from this when it happens. Its starting to feel like a crowded trade and when ever I get that feeling in the stock market, it usually turns out that the crowd is wrong. This may be because I’m spending all my free time reading about the bubble, but honestly, I’ve found not a single person I could have a rationale discussion with that disagrees there is a housing bubble now. I mean even Rich Dad himself, the great real estate proponent who has sold millions of books based on making money in real estate is calling this a full blown bubble and telling everyone to sell their real estate.
I also wonder what are other people’s motivations for following the housing bubble here in San Diego? If houses crashed by 50% are people here planning on stepping in and buying? Is anyone else like me planning on shorting housing futures the first day they trade?
Why are you all here?
PS. What’s Poway like? I’m looking at Carlsbad, Encinitas and Carmel as possible locations, but I haven’t checked out any other areas. I’d like to find a good family friendly neighborhood that has some character. I have a 2 1/2 yo and another one on the way…
