The National Inflation Association discusses Ben Bernanke’s recent comments before Congress, where the economy is headed and California’s budget problems.
(Video follows excerpt and commentary)
They are definitely in panic mode right now. In fact, he [Bernanke] made this statement, “it is not something that is ten years away, it affects the market currently.” So, if you think all this printing of trillions and trillions of dollars isn’t going to affect the economy right now, you’ve got it totally wrong.
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This current stabilization that we’re seeing in real estate is the biggest head fake in the history, probably, of my lifetime.
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The real estate market is headed for an utter collapse.
When Japan’s real estate market collapsed in the early 1990’s property prices lost almost 70% of their value (inflation adjusted), and they have yet to recover, nearly two decades later.
It may be difficult for some to imagine a situation where our economy stagnates or contracts for ten or twenty years. But this is exactly the scenario that we are facing in America today.
It has happened before. It will happen again.
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