After the thrill is gone

March 21, 2020


During this 'viral virus' season of things, the Government is doing what it can to help the citizens of the USA. They are putting moratoriums on evictions and HUD foreclosures. Sending money to affected workers. And maybe even giving some mortgage forbearance to landlords whose tenants cannot pay the rent. And they are pouring money into the financial system. Like TRILLIONS of dollars.


Well, a trillion dollars--that's a ton of money... OUR tax-payer money, not the governments.  Or at least that's how it's supposed to work.


But it doesn't.


The Fed can create money out of thin air.  Or rather in hyperspace on their computers.  They simply add as many numbers as they deem appropriate, and hit ENTER.


They will tell us that it is 'stimulating' our economy and maybe in the short term it will. I think what it really does is dilute our money.  Inflation--or rather devaluation of the dollar's buying power--is the end result.


Why am I bothering to go here?  Because IMHO, with interest rates at or near zero, and more 'quantitative easing' (dilution of our dollar), real estate will increase in 'value' after this crisis.  That will be especially important to those of us that actually survive the bug. No joke--that's the fact, Jack.


So, first things first: live through this, plan and set goals for post-Covid, and remain calm in the knowledge that we that come out on the other side will be stronger than before.


Keep your powder dry. Good luck to all, stay safe and healthy!

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