Sdr, no doubt there is still plenty of cash on the sidelines. I for one am in that boat. I have plenty of cash to make acquisitions, but when you are on a boat and not sure which way it’s going to flip over what do you do? It’s disheartening to think that our dollar could devalue dramatically but shadycat does make a good point. We really have no clue what is going to happen to the dollar until it actually does. We were all wrong with the upward move of the dollar the second half of 08. Most economists predicted the dollar would continue its’ downward trend with the Euro.
All we do know is that if economics continued to play the proper role in the RE markets we will have enough inventory for years to come in the current market and prices should continue to drop until we get back to the property supply to keep a stable market. Unfortunately there are so many variables these days. Regardless, we will be entertained over the next few years. I can’t imagine how cool all the new textbook charts will look in 2012. Imagine being an economics professor right now, what would you tell your class?
