In order for the United States to retain the world value and position of the dollar it must consider an across the board devaluation of private and public real estate investments and properties. The devaluation must happen there or it will happen to the dollar itself and impact it in a manner which will be irreversible to its global value.
The financial market crash or extreme recession, as most would like to consider it, was primarily caused by bank investments in poor sub prime loans and the acceptance of inflated property values as part of their bottom line value and profits reported to share holders. As we know now, these were not fringe investments, to the contrary, banks were all in. The definition of “all in” being that bad real estate investments and inflated property appraisals attracted stock purchases, portfolio managers that controlled pension assets, Union investments, Insurance Company investments, small mom and pop investors and of course, the Bernie Madoffs of the world. Even the federal government began using numbers based on the inflated real estate market when making their own economic forecasts. It is the very reason former President George W. Bush triumphantly declared the U.S. economy was “economically sound”, only to see the country and the world financially shaken to its knees in a matter of months following his statement.
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