Re: China & The Dollar
I'm on the fence on the real estate. I think there are overpriced areas, and I think a lot of inexperienced people who are using a lot of leverage to get into a house they cannot afford will be in trouble when the rates go up.
I'm not sure if there will be a huge crash though since people can hold on to their house. The problem is when people just walk away from their homes if they are upside down.
Another issue is loan originators pretty much are risk free. They approve anyone who walks through a door--take their 0.2-0.4% of the loan and then sell it to someone else (who bundles it up with other loans and then sells it to investors). I wish I could have gotten in on that [img]/images/graemlins/grin.gif[/img]
It is an interesting time though, and I wish I had some sort of crystal ball to see how this whole mess will play out.
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