Sunday, December 23, 2007

The Bubbles Popping

Here is a description of what has happened in Florida with Real Estate. But the reason behind this story is the Federal Reserve flooding the economy with dollars. This set in motion the speculative price increases to Real Estate as that market sucked up those extra dollars that were created out of thin air. This boom bust cycle which is referred to as the "Business Cycle" should be called the Real Estate cycle. You buy low, hold while the Fed drives up prices with inflated money then if you know what you are doing you sell at the peak of the market just before the next crash. Then you buy low to begin the cycle all over again. It's cruel...

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