Good grief

[jinasphinx]

Housing Index Is Expected to Show a New Low in Prices (NY Times):

Susan Lindsey, a San Diego software programmer, was once eagerly waiting for the housing market to crash. She said she would have no guilt about swooping in on some foreclosed owner who had bought a place he could not afford.

With prices now down by a third, however, she is content to stay in her $2,500-a-month rented house. She prefers to invest in gold, which she has been buying since 2003.

I can't tell from this article whether her thinking is that she's going to wait for housing prices to fall farther, or just that she lost her nerve. The way it reads, she's switched from a buy-low plan to buying high (gold is now over $1500/oz).

Comments

[georgmi.livejournal.com]

The historical regression suggests that gold would be overpriced today at anything above the $550-600 range.

It's possible that something fundamental has shifted in the world that would support long-term gold prices where they currently sit, but that likelihood is small enough that "invest" is entirely the wrong word to use in reference to buying gold. Pardon me while I go "invest" in a Powerball ticket.