The dollar has lost 30% of it's value in the last 5 years(fiat currency/inflation). The depreciating housing market will only drag the dollar down further, because homes are priced in dollars. Damned if you do, damned if you don't.
It's in the best interest of the federal reserve to create inflation(turning on the printing presses) because it makes debt "cheaper" to pay back, of course, this is at the expense of joe citizen's savings and cost of living. This is why they call inflation "the silent tax".
The Pound and Euro are at record highs against the dollar as well. Japan's asset price bubble(1990) is similar to what is happening in the prime markets of the US right now. Japan is still recovering from that and it took a few years before real estate prices stopped falling.
Why a Housing Recovery Is Far Off http://online.barrons.com/public/article/SB118377332233059776-u87JfztvY4J1exeyrMrsWt0taAM_20070806.html?mod=9_0002_b_free_features
A Cautionary Housing Tale from Japan http://www.bullnotbull.com/archive/japan-tale.html
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
timeasmymeasure
no winners in a down market
Date: 2007-07-12 03:09 pm (UTC)http://futures.tradingcharts.com/chart/US/M
The dollar has lost 30% of it's value in the last 5 years(fiat currency/inflation). The depreciating housing market will only drag the dollar down further, because homes are priced in dollars. Damned if you do, damned if you don't.
It's in the best interest of the federal reserve to create inflation(turning on the printing presses) because it makes debt "cheaper" to pay back, of course, this is at the expense of joe citizen's savings and cost of living. This is why they call inflation "the silent tax".
The Pound and Euro are at record highs against the dollar as well. Japan's asset price bubble(1990) is similar to what is happening in the prime markets of the US right now. Japan is still recovering from that and it took a few years before real estate prices stopped falling.
Why a Housing Recovery Is Far Off
http://online.barrons.com/public/article/SB118377332233059776-u87JfztvY4J1exeyrMrsWt0taAM_20070806.html?mod=9_0002_b_free_features
A Cautionary Housing Tale from Japan
http://www.bullnotbull.com/archive/japan-tale.html