Jim Rogers sees U.S. property crash

[hissho]

Commodities investment guru Jim Rogers stepped into the U.S. subprime fray on Wednesday, predicting a real estate crash that would trigger defaults and spread contagion to emerging markets.

"You can't believe how bad it's going to get before it gets any better," the prominent U.S. fund manager told Reuters by telephone from New York.

http://investing.reuters.co.uk/news...43Z_01_ZWE468140_RTRUKOC_0_MARKETS-ROGERS.xml

 

[kerosam]

so how would it affect our economy, both property & stock market?

 

[wayneL]

so how would it affect our economy, both property & stock market?

Armageddon :batman:

 

[noirua]

I have heard differing views about the US economy, particularly property prices and Asia. Perhaps Jim Rogers, having sold out of Asia and emerging markets, except China, is now hoping his comments will crash markets. His position in China, holding on whilst forecasting up to a 40% fall does not make sense.

Unemployment is generaly low in America, so the stronger loans, to those in good employment, will not be a problem.

 

[YChromozome]

Unemployment is generaly low in America, so the stronger loans, to those in good employment, will not be a problem.

True. But you just hope it does dent consumer confidence.

Last year Americans spent their entire pay packets plus 1% more. This has only happened four times in history before, pay packet +1% in 2006, pay packet + 0.6% in 2005, and the other two years was during the great depression when 25% unemployment meant people dipped into savings to pay for basic food and accommodation.

This 'excessive' consumer spending goes straight into goods and services, which help prop up company profits and keep people employed. If retail and services start to get slow, there will be job cuts.

 

[GreatPig]

Armageddon

Hey, leave those gerbils alone!

GP

 

[wayneL]

Hey, leave those gerbils alone!

GP

LOL

Now that took some research!!