[lvoc]

Originally Posted by aardogfsu

6 properties that avg. $700/month, I pay out HOA of around $170 avg. per property...TJ's said many times it's much wiser to rent than to invest in RE...I strongly disagree.

Sorry - I missed the [Sarcasm] tag. My fault - obvious in hindsight.

[tbill618]

Originally Posted by lvoc

There is no way that the Fed can lose this discussion. Their source of dollars is effectively infinite. That is in fact the only thing they can still do successfully.

Your view is very different from the normal doomsayer who projects hyper-inflation. I much prefer your vision as Bernanke can prevent that virtually forever.

If you are correct we can expect this rise to continue for many years.

So anyone who finds your thoughts appealing should buy now and ride it up.

They could lose it. But not from hyper-inflation. Hyperinflation is almost impossible when you are the world reserve currency. (Sure, everyone could dump the dollar and price oil, etc in another currency.) What currency would that be? The yen? Please, the Japanese are in much worse fiscal shape than we are. The euro? Not as long as they are carrying around the PIIGs around their neck.) The Fed is trying to spur inflation but it won't turn in U.S. dollar hyperinflation because when prices start to rise they will hit demand. That's right, if prices rise that takes money out of the pockets of Americans. The 2008 recession didn't really start to hurt until oil headed over $120/barrel. Of course, this is how the Fed can lose it, also.

Even with the Fed buying $80 billion of treasuries, MBS, etc per month they still need the market, including foreign buyers, to participate in our auctions and holding our stocks. If they decide cash is safer then we get another stock and bond market crash.

We have been through two huge bubbles in the past 15+ years. By now even the dummies aren't going to wait too long to dump stocks even if the Fed is trying to bar the door out of the markets.

Also, this is why I think deflation wins over hyperinflation. In the end, the Fed is out of tools to stop the next financial crisis.

[lvoc]

Originally Posted by tbill618

They could lose it. But not from hyper-inflation. Hyperinflation is almost impossible when you are the world reserve currency. (Sure, everyone could dump the dollar and price oil, etc in another currency.) What currency would that be? The yen? Please, the Japanese are in much worse fiscal shape than we are. The euro? Not as long as they are carrying around the PIIGs around their neck.) The Fed is trying to spur inflation but it won't turn in U.S. dollar hyperinflation because when prices start to rise they will hit demand. That's right, if prices rise that takes money out of the pockets of Americans. The 2008 recession didn't really start to hurt until oil headed over $120/barrel. Of course, this is how the Fed can lose it, also.

Even with the Fed buying $80 billion of treasuries, MBS, etc per month they still need the market, including foreign buyers, to participate in our auctions and holding our stocks. If they decide cash is safer then we get another stock and bond market crash.

We have been through two huge bubbles in the past 15+ years. By now even the dummies aren't going to wait too long to dump stocks even if the Fed is trying to bar the door out of the markets.

Also, this is why I think deflation wins over hyperinflation. In the end, the Fed is out of tools to stop the next financial crisis.

Feds can stop deflation virtually forever. The printing press is mightier than a bad economy.

I see nothing that ever stops them. They are buying not selling.

[tbill618]

Originally Posted by lvoc

Feds can stop deflation virtually forever. The printing press is mightier than a bad economy.

I see nothing that ever stops them. They are buying not selling.

Then why did the internet stock or housing bubbles pop in the first place? Deflation is just the after effect of a bursting asset bubble.

[observer53]

There's already a whole large thread on the LV housing market. This one is turning into a discussion of broader issues not specifically related to LV. Take the general discussion to the general forums.