谁先得到FED印的钱,谁就有权利决定钱的去处

the Fed is printing huge amount of money. inflation is a given. but inflation of what? that depends on who get the Fed's money first. now banks have it, they've decided that lending out money to people who buy houses is not in their best interest. why? you may ask. if you nearly went bankrupt by putting money in RE 3 years ago, are you willing to repeat that mistake again? no, of course not. mortgage credit is the life blood of housing. banks refuse to lend, housing goes down. but you may say, people do get mortgage these days. more than 95% of the mortgage is guaranteed by government via FNM and FRE. so the low mortgage rate is artificially kept low, not real. government support of housing has to come to an end sooner or later since government doesn't want to be the biggest landlord of the land. when government takes support away, housing crashes again. plus people who can afford housing lost money in their RE and 401K. they feel poorer, don't want to hear about RE and stocks again.

banks are now using money to buy T-bonds, because they think T-bonds are safe and liquid. that's why bond yields are so low. it is a bubble. that's where inflation is.

even if you don't know where inflation sticks its ugly head up, gold always knows before people even see inflation. as long as the money supply from the Fed increases, it devalues the dollar no matter where it goes. gold is priced in dollar. dollar goes down, gold price goes up. that simple. I've made my point clear in my blog:

http://blog.wenxuecity.com/blogview.php?date=201009&postID=11478

所有跟帖： 

• Learned, Thanks for sharing :) -baihui- ♀ (0 bytes) () 09/19/2010 postreply 09:59:37

• disagree,bank had gone thru the cycles of tighten and loosen mor -jy101- ♂ (484 bytes) () 09/19/2010 postreply 10:57:36

• would u buy a house with 9.5% mortgage in the future? -murmur.on.hudson- ♂ (483 bytes) () 09/19/2010 postreply 11:06:45

• bank can't borrow unlimited $$ at fed rate... -jy101- ♂ (230 bytes) () 09/19/2010 postreply 11:21:15

• you wont have that luck in the future -tiantiantaba- ♀ (47 bytes) () 09/19/2010 postreply 11:37:02

• haha, don't ever say never......... -jy101- ♂ (1338 bytes) () 09/19/2010 postreply 11:57:27

• Next RE boom will be usually associated with stock boom, :-) -朱88- ♀ (0 bytes) () 09/19/2010 postreply 11:59:55

• 将来Mortgage rate只有一个方向，涨。房价也只有一个方向， -any_more_left- ♂ (2 bytes) () 09/19/2010 postreply 12:23:31

• not exactly, from 70s to 90s, interest rate up to14%, house also -jy101- ♂ (614 bytes) () 09/19/2010 postreply 14:00:45

• FED印的钱,到底去谁家 -qiaoshe- ♀ (261 bytes) () 09/19/2010 postreply 17:21:40