Submitted by Richard Wicks, Aug 28, 2008 04:45

How ludicrous. Gold has had an enormous runup and a sharp downward retractment which appears to be forming a bottom. It's during this drop of gold from $1000/oz to $800/oz that we see housing "recovering". I have another theory. Gold prices were overblown, have come back down, and are now marching back up again. Nothing has changed economically for the dollar. This nation is still hopelessly bankrupt and unable to service it's debts. Also: It's a lot more interesting to look at historical home prices in terms of gold when you get to do it over a 100 year period. No way is housing at a bottom. It's quite simple, people cannot afford housing, and so called "owners" cannot afford to make payments on the white elephant they bought. Unless wage inflation happens, housing hasn't come close to a bottom yet. We have to return to pre 2000 valuations for that to happen. Calls for the housing bottom aren't there to get people to buy either, it's there to keep suckers from selling their homes, and to hang on, until they are so far underwater, they can't sell. Talk about slavery - in 10 years, a good portion of home "owners" won't even be able to leave whatever neighborhood their trapped in because they will be economically changed to their McMansion.

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