Did Bernanke kill housing recovery?

[Pipsqueamish]

fake housing market boom

Are people stupid? An ARM might start off a tiny bit lower in interest than a fixed rate mortage, but the Fed rate has hit bottom. It can't go any lower. That means an ARM will only be able to move in one direction, up.

One thing I found fascinating about all the talk of a recovery in U.S housing was the statistics regarding house prices rising but home ownership actually being in decline. I can't find the initial article but it was also reported by Bloomberg here.

The so-so called housing boom only really happened because investors were snapping up all the properties defaulted on in the wake of the last crash. As fundamentals go, I don;t think they say much at all about an imminant U.S recovery.

 

[Rambo35]

Oh great! A Bullish signal on US debt.

Almost an oxymoron, isn't it? The only positive thing in the US economy is its debt which is a terrible sign.

 

[elisab]

Are people stupid? An ARM might start off a tiny bit lower in interest than a fixed rate mortage, but the Fed rate has hit bottom. It can't go any lower. That means an ARM will only be able to move in one direction, up.

They're not stupid, they are desperate for money to maintain their standard of living.

 

[Pharaoh]

They're not stupid, they are desperate for money to maintain their standard of living.

They're going about it the wrong way. Saving a 1-2 percent now with the very high risk of a big upward adjustment a few years down the road isn't the way to maintain your standard of living. It's the way to find yourself in bankruptcy.

 

[elisab]

Meanwhile, Bernanke (and China) are going to burst the real estate bubble in Australia, as the latest data confirm:: -6.9% building permits in June.

 

[Pharaoh]

Hmmmnn... depress the Australian economy and then some Chinese companies can jump in to help Australian companies that desperately need cash. Think I'll go long on the CNY.

 

[elisab]

Hmmmnn... depress the Australian economy and then some Chinese companies can jump in to help Australian companies that desperately need cash. Think I'll go long on the CNY.

Would you invest in the long term in Cny?

 

[Pharaoh]

Would you invest in the long term in Cny?

Definitely! Although China also has inflation, the CNY is undervalued in terms of purchasing power.

The main drawback is that it trades in a limited range controlled by the central bank - no quick profits on the deal.

 

[elisab]

Definitely! Although China also has inflation, the CNY is undervalued in terms of purchasing power.

The main drawback is that it trades in a limited range controlled by the central bank - no quick profits on the deal.

What means are you using to invest in CNY?

 

[Pharaoh]

Since my bucketshop doesn't carry CNY pairs, I'm doing it the old fashioned way. My account at Mattress Bank has a significant percentage of deposits in cold hard Chinese cash.


Mattress Bank - Accepts all currencies and precious metals. Protecting investor assets worldwide since 1929.