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Show me the money!!

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by $$$$$$$$$$

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Charts are helpful and projecting trends successfully is great fun, but the analyses I see & hear in mainstream media rarely ever talk about underlying value of products & services. It's a fairly transparent gimmick, one you start to look for reasons for market exuberance, and compare the sizes of trends to the sizes of the forces allegedly driving them. The dot-com boom and the housing bubble, for example, could easily be seen at their heights to be based on expectations of future values added, not on real, present benefits. Some of the results of that kind of "thinking" practiced on even wider scales, by our "representatives" in government:

http://www.marketwatch.com/news/story/bernankes-recession-here-11-reasons/story.aspx?guid=%7B39D13A23-5028-4976-9883-BB1975099038%7D

6 replies

by dr dij

kids in college classes were taught that certain investments, i.e. housing would continually go up at double digits. Certainly wishful thinking.

Part of the grand move to real estate was the perceived notion also that it was something that "they don't make any more of" and part that for that reason it was a hedge from inflation also. In real terms it has just been keeping even over many years.

Market distortions from govt fueled money supply expansion to pay for over extended social progs, military and foreign programs have all contributed to the rush to real estate, combined with shysters fabricating income statements, and lack of checking of the investments when the loans are sold to third parties.

In the 'old days' a local bank would keep your loan and have a pretty good handle on your ability to pay back. no longer.

Back to govt fueled real estate distortions: back a few years when Turkey's govt was hyper-inflating their currency, every one kept building new houses and additions as it was one of the few areas that was keeping pace to some degree with inflation.

Look for a 2nd real estate bust: overbuilding by commercial developers - of strip mall, etc in areas where housing was overbuilt too and there are no customers.

I'm looking for it to get even worse if presidential candidates who say they will 'spend their way out of this' get elected.

by jaqui

McCain and Clinton.

both parties I know, completely different from the way they think.

but both party agendas get the same impact in policy that way.

by santeewelding

Sounds like you have your all invested, and that you are stirred to write by a threat to the value of your holdings.

Whether of interlocking instruments, their value denominated by fiat, or of interlocking and relative dependencies of mind, also denominated by fiat -- or, God help you, both, I have to agree about the threat.

I follow both sorts of currency.

by santeewelding

The capital does not admit of holding, such as your moniker, which you appear to hold, then not, in which latter case you are indomitable.

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