True, good advice. The question is , what is the end game? What is Presedent Trump selling (on the 30 th?) that legalize this global campaign.
And what is China's role in this?
Dollar now at 88.60 . This is insane. I live overseas and get paid in Dollars. Literally I have lost $450 in purchasing power per MONTH in the last 5 months. INSANE. I could see my company begin layoffs very soon. Around 4,000 in my company that live overseas. That's a lot of money that just disappeared. Thanks for your work Gregory. RESTEEMED.
Unfortunately I remember vividly the pain that you're experiencing right now... I worked in West Germany in 1985 and when I arrived I believe I was exchanging 1 USD for about 3 DM and within 4 months, the exchange dropped to under 2 DMs for each USD and may have been closer to 1.5DM for each USD (if my memory serves me right). So, from past experience I understand how quickly the purchasing power of the USD can evaporate!
The Crime Families that control the Fed (and the US government) realize that most Americans are not well-versed in the concept of inflation, what causes it, and that it is really just a carefully disguised form of grand theft. Promising tax cuts is just a way to calm the masses and throw them off guard. When this all plays out, and the USD index crashes below 80, the vast majority of Americans will be scratching their heads, wondering what the hell caused prices everywhere to skyrocket. The Bankster Crime Family-controlled msm will be used to divert attention away from who truly orchestrated the theft of their purchasing power.
They give tax decreases in one hand and hyperinflation in the other. Which means interest rate hikes are coming and all assets being purchased on credit are going to plummet. Buy cryptos to ride the wave of inflation.
Its mental markets time ..
Watched the fx markets move big figures since that spew of info...
Then ive watched metals all getting pushed down and still are !
We are now in fantasy land shot past the fairies heading for outer space - there is no economic reason for anything now since that spew of puke... he has successfully detached it all in the face of everyone on the planet !
Hold on tight its gonna get seriously bumpy for a while !
The treasury has a department called the exchange stabilization fund or #ESF. So he is using that word appropriately
Silver goes up 75cents an ounce and AG stick goes down, only in murika.
Is it the treasury departments division called exchange stabilization fund that is buying up the market to keeps all these balls in the air? Do you know specifically what ESF does and why it exists? (I've been trying to figure out the role of ESF.)
Greg, if you want to see what happens when a government expands monetary policy (devalues it's currency) take a look at the Venuseaula stock market. It looks like a newly minted cryptocurrency. The bolivar is worthless as the stock market soars.
i feel bad for the sleepy sheeple who have no clue what's happening in their own backyard as well as across the planet. AND they don't want to hear it! thanks Greg for keeping on top of this, it is frustrating i know, i watch you daily...hope you are looking after yourself my dear balance is important!
Hi Greg you have very interesting posts. I am not sure about the housing market comments. You are right and it is easy to see that the USD is tanking, but saying RE prices are going up becuase the USD is dropping I am not so sure. Being someone that invests in real estate I have seen the inventory dry up over the last few years while prices have increased. Isn't that classic supply and demand? Inventory has been low and prices were have been increasing for years now and that was when the dollar was high. I think the trend is just continuing. Also what about international markets where the USD is not used and where currencies have been gaining against the USD . There is widespread low inventory and rising prices in many markets around the world. We are seeing alot of Chinese money moving into these markets. And yeah china has rules about how much money they can move out of the country but they seem to be figuring out a way to move it.
happygolucky...I must ask...were you buying real estate in 2003-2009? Turning points in the real estate market are very tricky. Savvy sellers are wanting out...young buyers are wanting in because they have no historical perspective. Once a major crash is experienced, we have that historical perspective. Inexperience believes nothing changes.
No why? I bought after the downturn. I was fortunate enough to meet a wealthy RE investor during a 3 day fishing tournament where there was only 3 of us fishing together and I could pick his brain. Long story short he was able to help me invest and invest for cash flow. Although there has been significant appreciation which is nice but does not change my life very much. I don't really care because my loans are fixed rate if we move into mass inflation my rents will probably go up. More money for me every month.
However I really don't understand what your question has to do with my comment. What does that have to do with prices moving up in low inventory international markets which do not use USD? My point is it is not just US inventory dropping as there are markets all around the world with low inventory and higher prices. So drawing a correlation between a weaker dollar and rising RE prices without acknowledging that the inventory has been drying up when the dollar was stronger may not make a lot of sense.
I understand what you are saying. You truly got in at the perfect time...a dream come true for many investors. I don't believe any market can be isolated as you are viewing it. Don't forget that we now have a Global Economy. Isn't it ironic that all countries have rising RE markets and low inventories? (All nations are in this sinking ship together, tied at their waists. Moreover, all have huge debts because of their respective quantitative easing--and no real wealth or for that matter, most everyone has limping economies.) The looming Global Reset will devalue current values by 30-60%...this means all assets, cash, CD's, pensions, equities, properties...not sure about cryptos...yes, gold and silver, too, if in the system. History points to this scenario. Then, I've read the likely scenario is that banks will still require that the same terms on the original contract be fulfilled. Now, no one knows for certain that banks will take this posture, but this is what they did in the past. Certainly many property owners are wondering about this scenario. Indeed, this is scary stuff...because most of us have not experienced it in our lives; but some have - those that lived in Germany and other parts of EU...maybe the old Russia, too. (I'm not a historian)
RENTS will go up as long as DEMAND goes up. When gov'ts stop quantitative easing, SUPPLY goes up. Ask your mentor; I'd love to listen in!
I do not want to sound adversarial here, but every investor needs to be aware of turning points...and one is soon nearing. They all have been cooking the books longer than just a decade. Forgive me if I've given you another perspective; you certainly will and can believe your own expectations...we all do just that. Peace.
My comment was about Greg stating that US home prices are going up because of a weakening dollar. My point about rents going up is IF we run into a high inflation environment which Greg also said will happen, rents will most likely increase with the inflation. Rents are included in the CPI and I am sure you know that CPI is what is used to measure inflation. That was my point about rents going up. My rents have already gone up 50% and I was cash flowing before the rent increase.
I do not doubt there will be a correction at some point and every day that goes by we are one day closer. I could guess and get lucky but that is not my strategy for RE investing.
Another comment you made was "The looming Global Reset will devalue current values by 30-60%...this means all assets, cash, CD's, pensions, equities, properties". This statement logically cannot be true. The biggest problem I see with that statement is that you included cash and the different currencies that make up cash are typically what you gauge if an asset has been devalued. Let me give you an example. Lets say apple stock is currently valued at $170 USD and the stock drops 50% to $85 USD. Now at the same time USD devalues against the EURO at 50%. Now answer this question?? How is it possible that the Euro is devalued at 50%? What would you measure it against? If you say something like the Chinese Yuan then my next question is what would you value the 50% drop in the Yuan against? and so on. See you can't have all asset classes get devalued when you include cash which is made up of all fiat currencies.
Every country has cash that is specific to the value of their particular currency on any specific day. Forex is the trading of cash (currency) values of different nations...and certainly you know this. All currencies have different values that the trader is buying or selling for his specific purpose. If and when there is a Global Reset, all Western Countries will likely be reset at the same time. This is very complicated and no one truly knows how it will unfold. The decline will likely be different in all Western Countries, but the %'s will likely be similar. Global of course implies ALL countries but yet the BRICS are trying to establish a new paradigm for themselves that will exclude U.S.A.--for now. This is so complicated that Western Leaders are in such a quandary that they can only buy time by keeping all the balls in the air by continuing to buy bonds - as long as they can confuse the masses of uneducated, unsophisticated public in the West through MSM Propaganda...they are holding their own. And in reality the FED, IMF, CB, etc. could keep the balls in the air many more years; however, most experts theorize that 2018 will bring major changes. Good that everything is rolling along so well for your investment decisions. Most would love to be in your shoes.
When Greg says that rents will be pushed up by the lower value of dollars in US because of inflation, it would be specific to covering operating expenses that will also be increasing everywhere else, too. Hyperinflation would be the beginning of chaos. Look at Venezuela. ( I don't think we are on the same page because neither of us understands the other.)
RENTS will go up as long as DEMAND goes up. When gov'ts stop quantitative easing, SUPPLY goes up....then RENTS go down because few will be able to afford higher rents, forcing landlords to lower rents...in search of buyers. I see you have never experienced a falling stock market, either. Best wishes to you my young friend.
I think I understand you now. You are saying the Global reset devalue of cash only applies to Western countries and those outside of BRIC countries. So according to you it will be better to hold cash from the BRIC countries rather than the western countries because that is your metric to determine that cash from western countries has been devalued, and there are no other asset classes to own as everything else will devalue 30%-60% (stocks, equities, real estate etc..). Looks like we have now identified a solid investment strategy for your scenario of the global reset. I am glad we have that sorted.
As far as my original real estate point, it sounds like we agree as you stated prices rise when demand goes up. My point was Greg is perhaps wrong to say that low supply is not a significant factor in increasing prices and the fact the USD is weakening is the reason why RE prices are going up. From what you are saying prices will increase because of increased demand not necessary a weaker dollar. That was my original post question isn't it supply and demand that drives the price of real estate? I also had mentioned that when the dollar was rising RE was also rising. So looking at the strength of the USD doesn't necessarily have a strong correlation.
As far as your other comments about RE I am aware and have been that the market could be coming up on a correction soon. I just mentioned that I believe investing for cash flow may be a better place to be rather than appreciation. I do understand there are risks and there is a chance just like any investment I could lose my investment.
"Crime scene in progress!" True that my friend! It's been one for a long time. That's a great way to look at the tax cut they're "giving" us.... it doesn't really matter as the weaker dollar hits everyone even harder with higher prices so really a worse position for all of us right? Wow! GOLD, SILVER, metals in general along with CrYpTo's ...... start hedging my friends! Thank you Gregory as always much appreciated! Up-voted brother!
Good call...sit on our hands while they play with themselves...lol.
I can tell you for a fact...housing is on its way down...including rentals! Buyers are always caught up in the fear of rising interest rates...my advice to potential buyers...you will be buying at the top of the market...so buyer beware. Every RE market is unique unto itself. When an investment in a popular city is for commercial development, that is a market that will likely be stable until the entire US economy crashes. Gentrification is an ongoing process in most cities that are growing. in the Single Family market RE agents will skew their market perspective to increase their sales. New, young buyers are very susceptible to rising interest rates. It's all part of the learning process...we all start somewhere.
I live near Silicon Valley, and a condemned crack house on less than a half acre close to Stanford sold for $2 million; yet people out here are in complete la la land thinking prices will never stop rising. Can't believe how many times people have laughed at my claim that another, much larger crash, is coming. They've already forgotten about the sub-prime crash of '08, and seem completely delusional.
What really gets to me is how they've so utterly screwed the little guy. In this next crash, the vast majority of us are going to suffer badly, as what were told was wealth evaporates. Upvoted and resteemed👍
So...who is buying up the bond market to keep all the balls in the air? Here are some clues. The following information was taken directly from the website of U.S. DEPARTMENT OF THE TREASURY
Resource Center
Home » Resource Center » International » Exchange Stabilization Fund
Exchange Stabilization Fund
Introduction
The Exchange Stabilization Fund (ESF) consists of three types of assets: U.S. dollars, foreign currencies, and Special Drawing Rights (SDRs), which is an international reserve asset created by the International Monetary Fund. The financial statement of the ESF can be accessed at "Reports" or "Finances and Operations."
The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury ("the Secretary").
The Secretary is responsible for the formulation and implementation of U.S. international monetary and financial policy, including exchange market intervention policy. The ESF helps the Secretary to carry out these responsibilities. By law, the Secretary has considerable discretion in the use of ESF resources.
The legal basis of the ESF is the Gold Reserve Act of 1934. As amended in the late 1970s, the Act provides in part that "the Department of the Treasury has a stabilization fund …Consistent with the obligations of the Government in the International Monetary Fund (IMF) on orderly exchange arrangements and an orderly system of exchange rates, the Secretary …, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities.
Basically, if my interpretation is correct, they can do anything they want to do.
I can't wait to the end of the day ?
Tomorrow is going to be a day to remember!
Currency war and Inflation coming.
dollar index is looking very bad right now
Thanks for good crypto information sharing us bro.
Always stay with you.
upvote and resteem robin hood
tnx for upvote and resteem
Upvoted Mr Robin Hood
True, good advice. The question is , what is the end game? What is Presedent Trump selling (on the 30 th?) that legalize this global campaign.
And what is China's role in this?
Thanks again, Gregory, for keeping us informed. Resteemed and Upvoted. See you this afternoon.
Dollar now at 88.60 . This is insane. I live overseas and get paid in Dollars. Literally I have lost $450 in purchasing power per MONTH in the last 5 months. INSANE. I could see my company begin layoffs very soon. Around 4,000 in my company that live overseas. That's a lot of money that just disappeared. Thanks for your work Gregory. RESTEEMED.
Unfortunately I remember vividly the pain that you're experiencing right now... I worked in West Germany in 1985 and when I arrived I believe I was exchanging 1 USD for about 3 DM and within 4 months, the exchange dropped to under 2 DMs for each USD and may have been closer to 1.5DM for each USD (if my memory serves me right). So, from past experience I understand how quickly the purchasing power of the USD can evaporate!
The Crime Families that control the Fed (and the US government) realize that most Americans are not well-versed in the concept of inflation, what causes it, and that it is really just a carefully disguised form of grand theft. Promising tax cuts is just a way to calm the masses and throw them off guard. When this all plays out, and the USD index crashes below 80, the vast majority of Americans will be scratching their heads, wondering what the hell caused prices everywhere to skyrocket. The Bankster Crime Family-controlled msm will be used to divert attention away from who truly orchestrated the theft of their purchasing power.
Thanks Greg, upvoted.
WE DID UPVOTE AND RESTEEM
Thank you Mr Robin Hood
Yes
Of cource you are right.Your post is really helpful.Thanks for sharing @marketreport
100% upvote and resteem done . sir
crazy! Resteemed/upvoted and emailed to ignorant friends
thanx sir for share this new updates on market after weekend and always sharing is
helpfull
They give tax decreases in one hand and hyperinflation in the other. Which means interest rate hikes are coming and all assets being purchased on credit are going to plummet. Buy cryptos to ride the wave of inflation.
thanx sir for this always help us with your videos @upvote and
@resteemd
really a good work for your predtions on market with your videos and posts greg sir
@reseemd
Upvote and restem
upvoted and resteemed. @marketreport
Its mental markets time ..
Watched the fx markets move big figures since that spew of info...
Then ive watched metals all getting pushed down and still are !
We are now in fantasy land shot past the fairies heading for outer space - there is no economic reason for anything now since that spew of puke... he has successfully detached it all in the face of everyone on the planet !
Hold on tight its gonna get seriously bumpy for a while !
The treasury has a department called the exchange stabilization fund or #ESF. So he is using that word appropriately
Silver goes up 75cents an ounce and AG stick goes down, only in murika.
Is it the treasury departments division called exchange stabilization fund that is buying up the market to keeps all these balls in the air? Do you know specifically what ESF does and why it exists? (I've been trying to figure out the role of ESF.)
Thank you for the video
Resteemed
your best job for all of us appciriciate your give us good signals on market daiyl @marketreport
@resteemd
thnak you so much for your blog. resteem done sir
nice to see this new update on it your all update on market are really helpfull @resteemd
its good to see always watch your videos and your helpfull work is really good and i always like your work sir @resteemd
marketreport sir you give me always true infromtaion and opinions thanx sir for this
@resteemd
upvoted & resteemed
It makes a good knowledge about it Thank You.
Upvoted and resteemed!
This "crime in progress" will end so bad, it'll make the 2008 financial crisis look like a piece of cake.
@stehaller Yet so few here see it coming.
Greg please do not allow them to raise your blood pressure. I am just watching to see were the whole thing takes us. Thank you for the education.
I concur, the education is invaluable.
Thanks for sharing new update on market and helpful video Mr robin hood
Maybe gold and silver are down because the West is selling it off to the East. Thanks Greg.
The Chinese want real gold as payment for the US debt they've been persuaded to continue holding.
Great sir keep it up
Resteem
Greg, if you want to see what happens when a government expands monetary policy (devalues it's currency) take a look at the Venuseaula stock market. It looks like a newly minted cryptocurrency. The bolivar is worthless as the stock market soars.
Market crime scene
Thanx for the update Gregory!!! Really appreciate all you do...
The bond rollercoaster continues... ;-)
Re-steem
#FAKEMARKETS
There is some serious bond buying going on and the dollar still gasps for life
..... yippie ki yay.........
#FAKEMARKETS
#ReleaseTheMemo :-)
Yea and they will all go to prison. Lol not hardly but it is a nice thought. Upvote resteem.
It is a nice thought though.
Nice job keep it up 👍👍👍👍
i feel bad for the sleepy sheeple who have no clue what's happening in their own backyard as well as across the planet. AND they don't want to hear it! thanks Greg for keeping on top of this, it is frustrating i know, i watch you daily...hope you are looking after yourself my dear balance is important!
hlw my dear sir @marketreport, thanks for sharing wih us, Love you Sir.
upvoted/Resteemed
Hi Greg you have very interesting posts. I am not sure about the housing market comments. You are right and it is easy to see that the USD is tanking, but saying RE prices are going up becuase the USD is dropping I am not so sure. Being someone that invests in real estate I have seen the inventory dry up over the last few years while prices have increased. Isn't that classic supply and demand? Inventory has been low and prices were have been increasing for years now and that was when the dollar was high. I think the trend is just continuing. Also what about international markets where the USD is not used and where currencies have been gaining against the USD . There is widespread low inventory and rising prices in many markets around the world. We are seeing alot of Chinese money moving into these markets. And yeah china has rules about how much money they can move out of the country but they seem to be figuring out a way to move it.
happygolucky...I must ask...were you buying real estate in 2003-2009? Turning points in the real estate market are very tricky. Savvy sellers are wanting out...young buyers are wanting in because they have no historical perspective. Once a major crash is experienced, we have that historical perspective. Inexperience believes nothing changes.
No why? I bought after the downturn. I was fortunate enough to meet a wealthy RE investor during a 3 day fishing tournament where there was only 3 of us fishing together and I could pick his brain. Long story short he was able to help me invest and invest for cash flow. Although there has been significant appreciation which is nice but does not change my life very much. I don't really care because my loans are fixed rate if we move into mass inflation my rents will probably go up. More money for me every month.
However I really don't understand what your question has to do with my comment. What does that have to do with prices moving up in low inventory international markets which do not use USD? My point is it is not just US inventory dropping as there are markets all around the world with low inventory and higher prices. So drawing a correlation between a weaker dollar and rising RE prices without acknowledging that the inventory has been drying up when the dollar was stronger may not make a lot of sense.
I understand what you are saying. You truly got in at the perfect time...a dream come true for many investors. I don't believe any market can be isolated as you are viewing it. Don't forget that we now have a Global Economy. Isn't it ironic that all countries have rising RE markets and low inventories? (All nations are in this sinking ship together, tied at their waists. Moreover, all have huge debts because of their respective quantitative easing--and no real wealth or for that matter, most everyone has limping economies.) The looming Global Reset will devalue current values by 30-60%...this means all assets, cash, CD's, pensions, equities, properties...not sure about cryptos...yes, gold and silver, too, if in the system. History points to this scenario. Then, I've read the likely scenario is that banks will still require that the same terms on the original contract be fulfilled. Now, no one knows for certain that banks will take this posture, but this is what they did in the past. Certainly many property owners are wondering about this scenario. Indeed, this is scary stuff...because most of us have not experienced it in our lives; but some have - those that lived in Germany and other parts of EU...maybe the old Russia, too. (I'm not a historian)
RENTS will go up as long as DEMAND goes up. When gov'ts stop quantitative easing, SUPPLY goes up. Ask your mentor; I'd love to listen in!
I do not want to sound adversarial here, but every investor needs to be aware of turning points...and one is soon nearing. They all have been cooking the books longer than just a decade. Forgive me if I've given you another perspective; you certainly will and can believe your own expectations...we all do just that. Peace.
I don't understand your comment again sorry.
My comment was about Greg stating that US home prices are going up because of a weakening dollar. My point about rents going up is IF we run into a high inflation environment which Greg also said will happen, rents will most likely increase with the inflation. Rents are included in the CPI and I am sure you know that CPI is what is used to measure inflation. That was my point about rents going up. My rents have already gone up 50% and I was cash flowing before the rent increase.
I do not doubt there will be a correction at some point and every day that goes by we are one day closer. I could guess and get lucky but that is not my strategy for RE investing.
Another comment you made was "The looming Global Reset will devalue current values by 30-60%...this means all assets, cash, CD's, pensions, equities, properties". This statement logically cannot be true. The biggest problem I see with that statement is that you included cash and the different currencies that make up cash are typically what you gauge if an asset has been devalued. Let me give you an example. Lets say apple stock is currently valued at $170 USD and the stock drops 50% to $85 USD. Now at the same time USD devalues against the EURO at 50%. Now answer this question?? How is it possible that the Euro is devalued at 50%? What would you measure it against? If you say something like the Chinese Yuan then my next question is what would you value the 50% drop in the Yuan against? and so on. See you can't have all asset classes get devalued when you include cash which is made up of all fiat currencies.
Every country has cash that is specific to the value of their particular currency on any specific day. Forex is the trading of cash (currency) values of different nations...and certainly you know this. All currencies have different values that the trader is buying or selling for his specific purpose. If and when there is a Global Reset, all Western Countries will likely be reset at the same time. This is very complicated and no one truly knows how it will unfold. The decline will likely be different in all Western Countries, but the %'s will likely be similar. Global of course implies ALL countries but yet the BRICS are trying to establish a new paradigm for themselves that will exclude U.S.A.--for now. This is so complicated that Western Leaders are in such a quandary that they can only buy time by keeping all the balls in the air by continuing to buy bonds - as long as they can confuse the masses of uneducated, unsophisticated public in the West through MSM Propaganda...they are holding their own. And in reality the FED, IMF, CB, etc. could keep the balls in the air many more years; however, most experts theorize that 2018 will bring major changes. Good that everything is rolling along so well for your investment decisions. Most would love to be in your shoes.
When Greg says that rents will be pushed up by the lower value of dollars in US because of inflation, it would be specific to covering operating expenses that will also be increasing everywhere else, too. Hyperinflation would be the beginning of chaos. Look at Venezuela. ( I don't think we are on the same page because neither of us understands the other.)
RENTS will go up as long as DEMAND goes up. When gov'ts stop quantitative easing, SUPPLY goes up....then RENTS go down because few will be able to afford higher rents, forcing landlords to lower rents...in search of buyers. I see you have never experienced a falling stock market, either. Best wishes to you my young friend.
I think I understand you now. You are saying the Global reset devalue of cash only applies to Western countries and those outside of BRIC countries. So according to you it will be better to hold cash from the BRIC countries rather than the western countries because that is your metric to determine that cash from western countries has been devalued, and there are no other asset classes to own as everything else will devalue 30%-60% (stocks, equities, real estate etc..). Looks like we have now identified a solid investment strategy for your scenario of the global reset. I am glad we have that sorted.
As far as my original real estate point, it sounds like we agree as you stated prices rise when demand goes up. My point was Greg is perhaps wrong to say that low supply is not a significant factor in increasing prices and the fact the USD is weakening is the reason why RE prices are going up. From what you are saying prices will increase because of increased demand not necessary a weaker dollar. That was my original post question isn't it supply and demand that drives the price of real estate? I also had mentioned that when the dollar was rising RE was also rising. So looking at the strength of the USD doesn't necessarily have a strong correlation.
As far as your other comments about RE I am aware and have been that the market could be coming up on a correction soon. I just mentioned that I believe investing for cash flow may be a better place to be rather than appreciation. I do understand there are risks and there is a chance just like any investment I could lose my investment.
Upvoted. and. re-Steemed.
"Crime scene in progress!" True that my friend! It's been one for a long time. That's a great way to look at the tax cut they're "giving" us.... it doesn't really matter as the weaker dollar hits everyone even harder with higher prices so really a worse position for all of us right? Wow! GOLD, SILVER, metals in general along with CrYpTo's ...... start hedging my friends! Thank you Gregory as always much appreciated! Up-voted brother!
Great analysis Greg! Upvoted!
you are completely true sir actually i was in need for this explanation thank you sir no one can deny the markets corruption
Of cource you are right.Your post is really helpful.Thanks for sharing @marketreport
100% upvote and resteem done . my dear Sir,
Upvote and resteemit..😀😀😀😀😀😀
Good call...sit on our hands while they play with themselves...lol.
I can tell you for a fact...housing is on its way down...including rentals! Buyers are always caught up in the fear of rising interest rates...my advice to potential buyers...you will be buying at the top of the market...so buyer beware. Every RE market is unique unto itself. When an investment in a popular city is for commercial development, that is a market that will likely be stable until the entire US economy crashes. Gentrification is an ongoing process in most cities that are growing. in the Single Family market RE agents will skew their market perspective to increase their sales. New, young buyers are very susceptible to rising interest rates. It's all part of the learning process...we all start somewhere.
I live near Silicon Valley, and a condemned crack house on less than a half acre close to Stanford sold for $2 million; yet people out here are in complete la la land thinking prices will never stop rising. Can't believe how many times people have laughed at my claim that another, much larger crash, is coming. They've already forgotten about the sub-prime crash of '08, and seem completely delusional.
What really gets to me is how they've so utterly screwed the little guy. In this next crash, the vast majority of us are going to suffer badly, as what were told was wealth evaporates. Upvoted and resteemed👍
So...who is buying up the bond market to keep all the balls in the air? Here are some clues. The following information was taken directly from the website of U.S. DEPARTMENT OF THE TREASURY
Resource Center
Home » Resource Center » International » Exchange Stabilization Fund
Exchange Stabilization Fund
Introduction
The Exchange Stabilization Fund (ESF) consists of three types of assets: U.S. dollars, foreign currencies, and Special Drawing Rights (SDRs), which is an international reserve asset created by the International Monetary Fund. The financial statement of the ESF can be accessed at "Reports" or "Finances and Operations."
The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury ("the Secretary").
The Secretary is responsible for the formulation and implementation of U.S. international monetary and financial policy, including exchange market intervention policy. The ESF helps the Secretary to carry out these responsibilities. By law, the Secretary has considerable discretion in the use of ESF resources.
The legal basis of the ESF is the Gold Reserve Act of 1934. As amended in the late 1970s, the Act provides in part that "the Department of the Treasury has a stabilization fund …Consistent with the obligations of the Government in the International Monetary Fund (IMF) on orderly exchange arrangements and an orderly system of exchange rates, the Secretary …, with the approval of the President, may deal in gold, foreign exchange, and other instruments of credit and securities.
Basically, if my interpretation is correct, they can do anything they want to do.
Very volatile today. Upvoted and resteem
Upvote and restem