Higgenbotham wrote: Real estate has had a monstrous historic crash relative to gold. There's never been anything like it in all of history, so far as I am aware.
Anyone who expects real estate prices to fall further should be very cautious about gold, as the number of ounces of gold to buy the median house has limited downside from here on a historical basis.
Yes, the "deflation in terms of gold" is already far along. I should not have made it sound like it was all ahead of us. However, if we go into hyperinflation then prices in terms of gold will go down well below historical trends.
The question is should those looking for deflation only be looking for it in terms of gold? And yes, they should see that already.
I'll say it one more time - nobody knows what markets are going to do. Nobody on earth. Not Jimmy Rogers, not George Soros, not Warren Buffett, not Bill Gross, not Goldman Sachs. Nobody.
I agree. But some are a bit more accurate at predicting the future than Bernanke.