From another site...

[buddy]

Higher interest rates, 16 consecutive rate hikes by the feds and counting, will inevitably burst the real estate bubble, which is floating on a sea of mostly adjustable-rate debt, a lot of it interest-only or even with negative amortization.

Why all the rate hikes? Nobody wants the US dollar!

8.4 Trillion debt and 75 Trillion in unfunded liabilities means at one point its all gonna come apart.

The smart money knows this.

So the fed has to keep raising rates to keep this Ponzi scheme going or risk a free fall of the dollar.

Higher rates will also crush bonds and probably stocks. And they'll devastate the economy, since everybody is deeply in debt.

At one point down the road not too far its all gonna fall apart. When it does we will have not a Recession but a Depression on our hands like we have never seen IMO.

My advice is to take advantage of the recent correction in gold and silver and with both hands buy as much as you can in physical and also some top quality gold/silver stocks.

I hope I am wrong but I'm afraid its gonna get ugly. I expect truly serious financial and economic trouble. I don't see any way out.

I don't know the first thing about economics or the stock market, but just thought this post seemed alarming so I brought it here for examination.

 

[s_dooley24]

People and Pundits have been equating the real estate market to the NASDAQ or tech market bubble of the late 90s. These are two totally different asset classes and are not comparable. Lots of new tech startups had never turned a profit and were trading at ridiculous p/e ratios (thus they would have to meet unrealistic growth expectations to justify their stock price). On the other hand, is the real estate market over-priced?..most would argue yes and I would tend to agree. However, it has been cooling off. Simple analogy... the air is being let out of the real estate market balloon, while the balloon of the tech market popped. The reason being two fold:

1. Liquidity and turnover
-you can log onto your e-trade account and dump your portfolio in a matter of minutes, ever had an open house or been to closing?

2. Intrinsic Value
-people inherently have more trust in real estate, be it their home or investment property because they can physically see it/use it. And often in the case of the investment property it produces regular income (how many tech startups paid dividends?)

Also, interest rates are still relatively low if you look from the viewpoint of a historical context.