This is Confidence
Knowing that you are building equity and that your kids will have a place to come home to.
Owning a home will be one of the best things the average middle class citizen can do to protect them self from aggressive inflation that is just beyond the horizon.
The money supply has grown over 300% in the last 50 years. This is not new wealth, this is just paper money. We are all eager to get more of it. The printing presses have not stopped. The problem is that we used to be able to get a fryer chicken for $.29 a lb. and a gallon of gas for $.35 years ago.
Consumer confidence is all that is supporting the bubble. Politicians have bailed out friends at banks and automotive companies. “Too Big to Fail” has become a cliché phrase. Politicians have removed themselves from the mainstream health insurance and retirement systems… and in essence said to the rest of us “Let them eat cake”
Bankers and Wall St. brokers are the new protected class that are necessary for the rest of us to “get along”. This message is an updated version of something from the 30’s when unscrupulous industrialists were referred to as “Robber Barons”. It was once said that “what is best for General Motors is best for the country”.
Now China is one of the biggest
owners and customers of General Motors.
The Fed is doing everything it can to give the appearance that a recovery is in place and that “Happy Days” are just beyond the next election… no matter who wins.
Interest rates are at historic lows. The unsold inventory of new homes has been absorbed. The countries real estate agents are busy with buyers as major MLS / Resale inventories have shrunk.
Filed under: Rich R.E. Dummy Lifestyles
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