My wife is a realtor in central CA where we have also witnessed insane run ups due to ridiculous lending standards. She has first hand knowledge of the circumstances of the “poor american families” on the brink of losing their homes. The large majority bought their million-dollar tract homes with a complete understanding that they would not be able to meet their adjustable rate without the help of a home value appreciation cash out. It beat the alternative, remaining in a depressed neighborhood and waiting until their finances allowed for a reasonable step up. The latter requires effort, patience and (dare I say) fiscal responsibility. Instead they were able to live well for a few years, refi on an inflated appraisal, and use the cash for new cars and furniture (ie no money to recapture even if the banks/government wanted to). Whats next? List the house as a short sale on the slim hope of saving a credit rating that was poor to begin with, eventually foreclose, return to the original neighboorhood with a paid-for Hummer, Lexus and more Ethan Allen furntiture than you can stuff into the rental house. Who pays? It’s an election year so we must have bail outs. And our new Fed, long before the crisis has truly developed, has spinelessly conceded a rate cut and pumped the M1 money supply with billions. So ultimately you and I will cover the bill in the form of runaway inflation. Buy gold!
Would ETF funds in form of gold and precious metals be a good strategy to prevent erosion of savings with upcoming major inflation that will be artificially created by the Federal Reserve?
Would ETF funds in form of gold and precious metals be a good strategy to prevent erosion of savings with upcoming major inflation that will be artificially created by the Federal Reserve?
Would ETF funds in form of gold and precious metals be a good strategy to prevent erosion of savings with upcoming major inflation that will be artificially created by the Federal Reserve?
