What in the world is happening to financial markets these days? Greece, Interest Rates, QE2, Gold, Real Estate and it goes on and on. What is the take away when any of us look forward? The answer is to parse what we know from what we don't know. What we know is this, next year there will be an election, politicians want to be re-elected and the golden rule (He he owns the gold makes the rules). You were thinking of a different golden rule....right? Our beloved government officials will do everything and I mean everything in their power to make things better and they want inflation bad. The reason I make that statement is simple. If they can increase the value of real estate they will heal the troubled assets sitting on the banks books. If the banks can heal, then they will lend. If they lend the economy gets moving again. If the economy gets moving, people will find jobs. If the job market comes around, people are happy. Ergo, real estate goes up, jobs come around and politicians get re-elected.
Well there you have it if only it comes to pass. Until next time.
-Paul
