Listened to the interview with Lee and AAron. If they both expect inflation or hyper inflation, it seems to me that real estate is a good hedge
It is always good to listen to the contra arguement. My conclusion is they are a bit too pessemistic. Sub prime is a big problem for the marginal consumer. I do not think it is cataclysmic as some are thinking. The free market economy is ALWAYS full of excesses in certain areas, but they always work themselves out to the detriment of the ones affected or participating in those excesses. This pales (sub prime) in comparison to the oil shock of the early 70's. The economy ALWAYS muddles through. I stick with my game plan of buying the solid banks ( C, BAC, JPM, WFC, WB ) and the great growth and predictable earners like jnj pg cvx xom pep gis on any market corrections.
It is always good to listen to the contra arguement. My conclusion is they are a bit too pessemistic. Sub prime is a big problem for the marginal consumer. I do not think it is cataclysmic as some are thinking. The free market economy is ALWAYS full of excesses in certain areas, but they always work themselves out to the detriment of the ones affected or participating in those excesses. This pales (sub prime) in comparison to the oil shock of the early 70's. The economy ALWAYS muddles through. I stick with my game plan of buying the solid banks ( C, BAC, JPM, WFC, WB ) and the great growth and predictable earners like jnj pg cvx xom pep gis on any market corrections.