Quote:
Originally Posted by $5 submissions
The way asset deflation in housing is going, I believe you, bro. However, what do you think the impact of the coming stimulus-created hyperinflation will have on housing prices?
|
I think the biggest risk is the government simply devaluing the dollar. It's inevitable. One of the Congressional Research Service reports I posted here on GFY flat out said that devaluation is the probably going to be the way the government deals with the massive debt we have. Will it happen in a year? 5 years? 10 years? Not sure... but I am sure this is the plan since both Bush, Cheney and Obama have said "deficits do not matter" and the only way that is true is if we default on our debt or plan to devalue the dollar. I am going to bet on the latter. So save in gold... Unfortunately our government has a history of making gold illegal in times of trouble. That worries me a bit. I think the devaluation will be at least 5 years out, but who knows... For now though deflation is the order of the day.
FYI. Some of my Wall Street buddies are saying tomorrow and Monday are going to be a bloodbath. We may be in for a market crash...
