My 1st Million At 33 – yes, you can do it too

Sorry, I just don’t have respect for someone who does not do his job according to his duty, and then tries to clean his act up, and keeps playing this confidence game by words: “the worst of housing correction may already be over”. Housing boom due to global integration and the collapse of Berlin Wall? Say what? Are you telling me that you didn’t know what you were doing? Who played words on deflation scare in 2002/2003 to drive long term bonds to ridiculuously low level while deflation was nowhere to be seen? So it makes no difference for homeowners and investors to have a short-term interest rate at 6.5% or 1.0% (for 1+ years)?

If US ever goes into a hyper-inflationary depression, one of the root causes will be due to actions and inactions from Greenspan and Bernanke. The game and fruits of inflation are very sweet while the bitter ones has not come yet. A revered Fed chairman? We will see how history judges Greenspan. If he lives long enough (20 to 30 more years?), maybe he will just see how things unfold for himself.

With current interest rates well below 5.0%, I suspect that Fed has probably bought enough 10-year and 30-year treasury bonds (by printing money) to drive down the interest rates for ARM resets and propel the stock markets higher. More money, more inflation. Since all of these money won’t manifest its inflationary power for quite a while, it’s just the right medicine for the right time. And better yet, the more US inflates, the better it is for all the debts. As long as US can keep its image of a strong (military) country with vast resources, all the Asian and Middle East people who don’t live in the US will not have any ideas about why music CDs costing $10.99 several years ago are now costing $15.99, or why a $10 haircut is now $15. Hey, they don’t live here. How would they know? As long as they are willing to fund the US spending style, we get to spend the money and send them more IOU papers. It’s a happily consuming nation. Remember Bush always said, we will defend our democracy and lifestyle? Don’t mean to take his words out-of-context, but a war if for oil will be indeed a war for the lifestyle.

Yeah, a lower interest rate definitely helps the housing market without a doubt. I even saw two houses that were on the market for 100+ days recently sold after long term interest rate plunges under 4.75%.