[Bob]

[quote=patientrenter]
Banks would be perfectly happy with a solution that dropped house prices and forgave debts, as long as they got bailed out. But notice how the primary effort has actually been to pour truly vast amounts into more cheap and easy (<5% rate, 3.5% down, tax credits...) loans to buy homes - to keep the prices high. That's for voters.[/quote]

What you're conveniently ignoring is the fact that the overwhelming majority of Americans OPPOSED the bailouts of the banks last fall, and the majority of Americans OPPOSED the bailouts of the auto industry. Yet, the bailouts went through anyway. Why ? Because the banks and the corporations are given priority over the citizens. And I disagree with you on why the Feds are handing out cheap loans as well. They're not doing it for the voters, as Bernanke is immune to voter reaction. Rather, they're doing it to stop a deflationary cycle which would destroy some of the largest US banks, while at the same time hoping to prop up the value of MBS.

[Bob]

[quote=patientrenter]
Banks would be perfectly happy with a solution that dropped house prices and forgave debts, as long as they got bailed out. But notice how the primary effort has actually been to pour truly vast amounts into more cheap and easy (<5% rate, 3.5% down, tax credits...) loans to buy homes - to keep the prices high. That's for voters.[/quote]

What you're conveniently ignoring is the fact that the overwhelming majority of Americans OPPOSED the bailouts of the banks last fall, and the majority of Americans OPPOSED the bailouts of the auto industry. Yet, the bailouts went through anyway. Why ? Because the banks and the corporations are given priority over the citizens. And I disagree with you on why the Feds are handing out cheap loans as well. They're not doing it for the voters, as Bernanke is immune to voter reaction. Rather, they're doing it to stop a deflationary cycle which would destroy some of the largest US banks, while at the same time hoping to prop up the value of MBS.

[Bob]

[quote=patientrenter]
Banks would be perfectly happy with a solution that dropped house prices and forgave debts, as long as they got bailed out. But notice how the primary effort has actually been to pour truly vast amounts into more cheap and easy (<5% rate, 3.5% down, tax credits...) loans to buy homes - to keep the prices high. That's for voters.[/quote]

What you're conveniently ignoring is the fact that the overwhelming majority of Americans OPPOSED the bailouts of the banks last fall, and the majority of Americans OPPOSED the bailouts of the auto industry. Yet, the bailouts went through anyway. Why ? Because the banks and the corporations are given priority over the citizens. And I disagree with you on why the Feds are handing out cheap loans as well. They're not doing it for the voters, as Bernanke is immune to voter reaction. Rather, they're doing it to stop a deflationary cycle which would destroy some of the largest US banks, while at the same time hoping to prop up the value of MBS.

[Bob]

[quote=patientrenter]
Banks would be perfectly happy with a solution that dropped house prices and forgave debts, as long as they got bailed out. But notice how the primary effort has actually been to pour truly vast amounts into more cheap and easy (<5% rate, 3.5% down, tax credits...) loans to buy homes - to keep the prices high. That's for voters.[/quote]

What you're conveniently ignoring is the fact that the overwhelming majority of Americans OPPOSED the bailouts of the banks last fall, and the majority of Americans OPPOSED the bailouts of the auto industry. Yet, the bailouts went through anyway. Why ? Because the banks and the corporations are given priority over the citizens. And I disagree with you on why the Feds are handing out cheap loans as well. They're not doing it for the voters, as Bernanke is immune to voter reaction. Rather, they're doing it to stop a deflationary cycle which would destroy some of the largest US banks, while at the same time hoping to prop up the value of MBS.

[Bob]

[quote=patientrenter]
Banks would be perfectly happy with a solution that dropped house prices and forgave debts, as long as they got bailed out. But notice how the primary effort has actually been to pour truly vast amounts into more cheap and easy (<5% rate, 3.5% down, tax credits...) loans to buy homes - to keep the prices high. That's for voters.[/quote]

What you're conveniently ignoring is the fact that the overwhelming majority of Americans OPPOSED the bailouts of the banks last fall, and the majority of Americans OPPOSED the bailouts of the auto industry. Yet, the bailouts went through anyway. Why ? Because the banks and the corporations are given priority over the citizens. And I disagree with you on why the Feds are handing out cheap loans as well. They're not doing it for the voters, as Bernanke is immune to voter reaction. Rather, they're doing it to stop a deflationary cycle which would destroy some of the largest US banks, while at the same time hoping to prop up the value of MBS.

[Bob]

[quote=Djshakes]After reading all the different posts it sounds that inflation is imminent. What do you feel is the best hedge and why? [/quote]

Real estate will be a good investment as long as you buy low. I wouldn’t invest in the mid/high end right now, as there is still too much room for prices to drop. But at the low end you should be able to get a positive cash flow if you shop correctly. And if inflation kicks in, you’ll be ahead of the game.

[Bob]

[quote=Djshakes]After reading all the different posts it sounds that inflation is imminent. What do you feel is the best hedge and why? [/quote]

Real estate will be a good investment as long as you buy low. I wouldn’t invest in the mid/high end right now, as there is still too much room for prices to drop. But at the low end you should be able to get a positive cash flow if you shop correctly. And if inflation kicks in, you’ll be ahead of the game.

[Bob]

[quote=Djshakes]After reading all the different posts it sounds that inflation is imminent. What do you feel is the best hedge and why? [/quote]

Real estate will be a good investment as long as you buy low. I wouldn’t invest in the mid/high end right now, as there is still too much room for prices to drop. But at the low end you should be able to get a positive cash flow if you shop correctly. And if inflation kicks in, you’ll be ahead of the game.

[Bob]

[quote=Djshakes]After reading all the different posts it sounds that inflation is imminent. What do you feel is the best hedge and why? [/quote]

Real estate will be a good investment as long as you buy low. I wouldn’t invest in the mid/high end right now, as there is still too much room for prices to drop. But at the low end you should be able to get a positive cash flow if you shop correctly. And if inflation kicks in, you’ll be ahead of the game.

[Bob]

[quote=Djshakes]After reading all the different posts it sounds that inflation is imminent. What do you feel is the best hedge and why? [/quote]

Real estate will be a good investment as long as you buy low. I wouldn’t invest in the mid/high end right now, as there is still too much room for prices to drop. But at the low end you should be able to get a positive cash flow if you shop correctly. And if inflation kicks in, you’ll be ahead of the game.

[Bob]

[quote=Chris Scoreboard Johnston]We are about to begin another big leg down in most markets, when that happens the hyperinflation scare that the gold sellers are trying to create will take a back seat to deflation again for awhile[/quote]

Its not just gold sellers who are concerned about inflation/hyper-inflation, the concern has spread to mainstream economists, Wall St. investors, and even some government officials.

[Bob]

[quote=Chris Scoreboard Johnston]We are about to begin another big leg down in most markets, when that happens the hyperinflation scare that the gold sellers are trying to create will take a back seat to deflation again for awhile[/quote]

Its not just gold sellers who are concerned about inflation/hyper-inflation, the concern has spread to mainstream economists, Wall St. investors, and even some government officials.

[Bob]

[quote=Chris Scoreboard Johnston]We are about to begin another big leg down in most markets, when that happens the hyperinflation scare that the gold sellers are trying to create will take a back seat to deflation again for awhile[/quote]

Its not just gold sellers who are concerned about inflation/hyper-inflation, the concern has spread to mainstream economists, Wall St. investors, and even some government officials.

[Bob]

[quote=Chris Scoreboard Johnston]We are about to begin another big leg down in most markets, when that happens the hyperinflation scare that the gold sellers are trying to create will take a back seat to deflation again for awhile[/quote]

Its not just gold sellers who are concerned about inflation/hyper-inflation, the concern has spread to mainstream economists, Wall St. investors, and even some government officials.

[Bob]

[quote=Chris Scoreboard Johnston]We are about to begin another big leg down in most markets, when that happens the hyperinflation scare that the gold sellers are trying to create will take a back seat to deflation again for awhile[/quote]

Its not just gold sellers who are concerned about inflation/hyper-inflation, the concern has spread to mainstream economists, Wall St. investors, and even some government officials.

[Author]

Posts