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Originally Posted by marketsmart
ok dummy...
i have been buying places out of foreclosure for 25% of what they sold for 3-5 years ago..
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Ah yes, the first thing someone would do in an economic depression, go foreclosure buying and hoping he can turn those foreclosures around and sell the property for 10x their value. The only problem with this idea is that nobody is buying and nobody can afford to pay rent on their ARMs, which is why there are foreclosures in the first place.
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i dont think we are going to have an economic collapse, but i do think that home prices will continue to go down.. buying at 25% assures me that even if the market drops 50% from 3-5 years ago, i will still be just fine...
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Home prices haven't even begun to hit rock bottom yet, but I don't understand what you're going to gain from this method. Your method rests on the belief that we will get out of this depression soon and people will start buying again, at a markup cost. I don't think there's any possibility of that happening anytime soon.
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since gold is no longer backing the dollar, i dont think precious metals are immune from a bad economy..
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Immune? It's possible that they aren't. It's more possible that they're inversely related to the stock market on most occasions and are bought during periods of depression and/or high inflation or speculation of high inflation/hyperinflation. I still believe gold will rise $5000-$6000 an ounce so I'd be a full to keep my money in bonds, or other cash related assets.
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until the dollar no longer becomes the preferred currency, it will never become worthless..
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It's already pretty worthless and it should have lost its reserve currency status years ago. I'd say it will lose that in the next 2-3 years as the Obama administration continues the runaway spending.
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too many other economies are dependent on the US and so when the US goes down, the rest of the world goes down..
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Bullshit. China would prosper longterm if the dollar was no longer the reserve currency. The same goes for the other BRIC countries.