The Costar group has released this interesting survey this morning, very much in tune with our most recent post on this page. The survey also provides a telling link to an illustration showing what a trillion dollar represents, to put things in perspective.
Everybody seems to agree that the plan has its own merits but doubts about the results. The expected outcome for most Real Estate professionals is inflation and currency devaluation.
Some seem to believe that it is probably not a bad thing, after all, as it could help reducing some of the pressure coming from the debt.
We believe, however, that this will have an adverse effect on the US ability to borrow, and that it will lead to an interest rates race among leading economies -each trying to attract the capital it needs to finance bailouts and stimulus packages-, which could cripple the world economy for a long time.
This could also very well lead to a shift in the balance of power, worldwide, with cash-rich and lesser indebted economies like China reaping most of the benefits.
Filed under: Economy, Real Estate, U.S., Credit Markets, Economy, Public-Private Investment Program, Treasury
