Just before Christmas in 2005 I advised my friends that they should either sell their home in the coming year or plan on staying in it for awhile.
Their children were going to college and it was obvious from all the key indicators that the housing bubble was getting ready to pop. Mostly I had been reading Paul Krugman's column on the OpEd page of the NY Times and putting two and two together.
Currently it is obvious that the economy of the United States is tanking. And if the US Dollar becomes funny money, the Chinese are going to be pissed. Like 1.5 trillion dollars is a lot of swag anywhere ... and there is only so much Manhattan real estate ... and as the dollar plummets ... the amount you can get for any given million or so is less and less.
What will our brilliant financial idiots do then? Like, when the dollar tanks? Right now they are trying desperately to hold back the panic that a real run on the dollar would cause.
And you see, folks ... there isn't any vast industrial base to pick up the slack ... in like churning out something the world wants at the lower prices the falling dollar would bring ... so we are caught in the economic vise of our own making ... not the making of we the people, but of the making of our great greedy leaders ...
The only question left is who are "they" going to blame.
Oh ... and my friends didn't sell their home. They enjoy living in it, their neighborhood, and their community. And they will not retire for another ten years or so. They love what they do and how they live.
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