I don't think it strenghtens the economies, rather makes it worse. Collapse is coming just the timing is in doubt.
The positive for real estate would be, it is an asset which doesn't just disappear, same as gold. They both will always have some value. One can argue which one will do better or worse during troubled times. In my opinion real estate will fall because there just are too many people exposed with high mortgages and investment properties for it not to fall. It is although illiquid and carries massive fees, charges and maintenance with it. It will only take approx 3-5% of people to sell in a downturn and you have a crash. I do hope we go sideways for a decade rather then crash but doubt it.
I am an avid reader of Martin Armstrong and think we will find out very soon. Michael Pettis and Reggie Middleton have some very good articles about china, europe and the US on the web as well.
No one knows for sure but someone will be right, if that makes sense. I actually want everybody to do well but it just ain't happening. nata12
