I suppose you would be right --- but eventually I tend to think the opposite will happen.
Our rising real estate was part of the world wide phenomenon --- and you would assume we will eventually join the downward rush.
That is barring hyper-inflation --- which it could be argued we have almost experienced.
Certainly in Brisbane --- house prices are beyond the reach of the average earner --- or a least would be if it wasn’t for the previously lax lending by the Banks.
So my guess is that between the real estate issue, the banks derivative exposure, the fact that most of their dividends are already paid out of capital (under written dividend reinvestment plans), the banks could well be in for some trouble.
I like anyone else am only guessing --- but I can’t see how asset inflation (and by association, the banks) can continue on its merry way.
Gold could well get a flogging for a while --- it would all be part of the rescue package.
If the USA looses the $ --- they loose everything.
