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Everyone on this board realizes that the housing market is still very unstable at this point.
But there comes a time when the whole entire real estate infrastructure will take down the entire economy (as it's already severely doing with massive layoffs).
So those wishing for a further housing collapse, where are you going to hide your money? Because if more than one of the top 5-6 big banks fails, the entire FDIC will go down with it.
Sure, the US Treasury will try to act as a last backstop but the US dollar will be severally damaged, probably for a very long time. The treasury cannot keep on printing more money.
How do you guys or gals feel about it. Because I'm not sure where to put my money these days. Massive inflation will also set in.
Everyone on this board realizes that the housing market is still very unstable at this point.
But there comes a time when the whole entire real estate infrastructure will take down the entire economy (as it's already severely doing with massive layoffs).
So those wishing for a further housing collapse, where are you going to hide your money? Because if more than one of the top 5-6 big banks fails, the entire FDIC will go down with it.
Sure, the US Treasury will try to act as a last backstop but the US dollar will be severally damaged, probably for a very long time. The treasury cannot keep on printing more money.
How do you guys or gals feel about it. Because I'm not sure where to put my money these days. Massive inflation will also set in.
The issue is with our monetary system. Not housing. Why would prices of homes going down entail an economic collapse? The problem is we basically have a housing backed currency. Why does the money supply increase on non productive items? It shouldn't.
If only they would do monetary reform. Get rid of fractional reserve lending and turn it into full reserve lending. And the money supply shouldn't be allowed grow by producing loans for homes. It should only grow based on something that can produce not a consumable like homes.
As for inflation, while the Fed just injected a whole bunch of money, it's nowhere near the amount being lost, so there's no inflation to worry about yet.
As for your dollars, I personally am in Treasury only MMFs, precious metals, and foreign currencies.
The issue is with our monetary system. Not housing. Why would prices of homes going down entail an economic collapse? The problem is we basically have a housing backed currency. Why does the money supply increase on non productive items? It shouldn't.
As for your dollars, I personally am in Treasury only MMFs, precious metals, and foreign currencies.
I'm seriously worried about my cash funds if real estate continues any further downwards (in most markets) takes the whole entire banking system donw (I know the US govt will do everything within their powers to prevent this).
Chet Everett....I am aware of the links you posted. Thanks for informing others about how those systems work.
However, I'm not very trustful of the US govt these days. I believe they will try the best they can to save the banking system but there is only a limited amount of resources left.
One of the true problems with our economy lies with the federal reserve and how they manipulate us. How long have interest rates been at or near 0%?
How much money isn't moving around when interest rates are non existent? What are the downfalls of the same? How many failed QEs do we need to "float" the economy?
When mortgages were in the 5-6% range people had skin in the game. Sure, your monthly payments were higher but you also had to show up with a true down payment. People also tend to double up on mortgage payments when interest rates are higher. I know I did, even when cash was tight. Same with car notes.
Not everyone got a housing/auto loan for nothing as they do now.
Zero interest rates means zero return on simple investments such as CDs/IRAs. These are investments the typical working man can make and they do promote one to save money when the growth of investment can be realized.
Blue collar Joe would be more apt to save if he realized 7% interest on his $400 a month savings; passive income. The wealthy live on passive income but have millions/billions invested so the return is astronomical.
I remember when people were excited about what they earned with a simple passbook savings account. Those days are long gone...people now play the Lottery instead. Savings? How many can hand you $500 of their own within a day's time?
Interest rates are going to be the next hurdle the federal reserve is going to face. Free money only lasts for so long. Capitalism doesn't work under the system.
Interest rates are going to be the next hurdle the federal reserve is going to face. Free money only lasts for so long. Capitalism doesn't work under the system.
Probably should've just started a new thread. In response to the above, the feds real hurdle is the economy still stinks and may not be able to handle interest rate hikes very well. Unemployment rate has dropped but wage growth has been abysmal. The fed has done everything right, they're just waiting for the economy to get it together. Once that happens slow interest rate increases won't be a big deal at all.
Sorry, it showed up in he right panel, along with active threads. I usually catch the dates but failed to on this one.
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