Be Sure To Ask The Right Questions

People ask us do you think the housing market is correcting that much? We say your asking the wrong question. The proper response is do you think the housing market went up that much?

Just like stocks...if you invest at the wrong time or in the wrong company losses can be expected....The housing market started its correction probably two years ago....the press is sensationalizing it now....its a buyer market and most of the unsold inventory is at prices that never reflect reality anyhow...so that statistic is irrelevant....in fact the surprise will be to the upside in great locations and prime inventory...just like where money flows into stocks...the best run, over capitalized, leadership companies always attract the most investors over time.

Mortgages can be had today at normalized terms..i.e. put equity down, have real predictable income and buy a house you can afford...the way it used to be.....so CNBC is wrong and the market is stabilizing not imploding. It is having problems where people have over paid and moved into a house they can't afford in the first place....never ever speculate on real estate...there are always better alternatives.

China sells $130 million of goods every hour world wide....growing at 25% per year. Inflation has come back and is understated...gold is telling us that now.....oil supply is not meeting current and growing demand...we are working through the well publicized inventories right now....when that is gone prices will continue much higher....Natural gas remains the most under priced commodity/ energy source in the world followed by sugar.

"The current credit bust is not confined to real-estate lending. In truth, there are interest rate "resets" galore across the entire economy. Borrowing short has become a raging epidemic. Floating-rate paper now accounts for 54% of total debt issuance, up from 26% as recently as 2002. That means a startling $540 billion in corporate bonds will need to be rolled over next year."

THE COST OF CAPITAL IS GOING HIGHER NOT LOWER AND THE FED DOES NOT SET THOSE RATES.....THE MARKET DOES.

Danny Boy seen here likes to have as many options as possible each day.....