Wednesday, October 26, 2005

Not a good economic sign

The New York Times reported today small investors are rushing into commerical property presumably because the residential market's peaking and for easier credit terms.

Also suggests the smart money is cashing out.

The underlying problem is the funny money folks at the Federal Reserve simply don't grasp the havoc they're inflicting on the productive economy by promoting property speculation with easy credit. I said at the Procter & Gamble meeting a few weeks ago the shares faced long term weakness because quality companies are less attractive investments for young investors. Who's going to replace older, buy and hold investors like me in it for the dividend yield?

Beats me why Bush is such a chicken about getting into a donnybrook with Congress by nominating a Fed chairman with new ideas. The best the press can say about Bernanke is he'll be an easy confirmation.


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