You guys don’t get it do you? Its the age old wisdom “Don’t Fight the Fed!” The Fed has determined that home prices must stop falling to save the economy from collapse. Today they signaled that they will keep firing until prices stop falling period. From today forward when you blather away about the sky continuing to fall from here you are a fool. The Fed printing press that prints dollars. If necessary they will print and loan at 0% until house prices stabilize. They will succeed and in Aug. 09 RE in SD will cost more “IN US DOLLARS . . . .” Now . . . if someone wants to argue that SD RE in Euro, Yen, or Gold will be worth less . . . . You may be right there. The dollar will weaken substantially from here on out. Sure the SD RE will be worth more in Aug. 09 but in real world global purchasing power terms it will be worth less. Read . . . if you have all your money in cash and are sitting in cash because the sky is continuing to fall you are in one of the worst most risky investments you can be in. Thats right . . . those that have their money in a bank so it is “safe” are going to get screwed. Buy RE, buy oil stocks, buy mining stocks, buy Chinese stocks, but gold, I don’t care. Don’t stay liquid in US dollars however. My original post stands . . . SD RE in US Dollars will cost more US Dollars in Aug. 09 . . . largely because the US dollar is going to hell in a hurry.
