I did it. I went out and took out a huge honkin' mortgage to buy an overpriced house.
Yep, me. W.C. Varones. Lifelong renter, perpetual doomsayer.
Why? Because there is no exit strategy. Ben Bernanke and Barack Obama have sworn to destroy the dollar in order to reinflate the housing bubble.
They will stop at nothing. They will bulldoze vacant houses to shrink the inventory. They will offer free citizenship to foreign buyers to stimulate demand. They will take more and more bad bank debt onto the Treasury's books. They will print infinite amounts of money to buy mortgages, Treasuries, Goldman Sachs CDOs, whatever it takes.
You can get a government cheese 30-year fixed-rate mortgage at 5%. Five percent!!! Have you seen the deficits Obama is running? Running deficits at 13% of GDP is not consistent with low long-term interest rates. Taking out a 30-year-fixed is the best way for individuals to short the Treasury. By the back half of your mortgage, you'll be paying it off with Monopoly money. Or Zimbabwe dollars. And if that's not enough, you get an $8000 tax credit just for taking the free money.
If Obama and Bernanke are going to destroy my country and my dollar, I'm at least going to get a free house out of it.
Oh, and I've changed teams.
Go Zimbabwe Ben!!!