austrian63

The End of Excess

Agreed. As a culture, we are so used to spending much more than we can really afford, we have not yet come close to adjusting our lifestyles and spending to what we can afford. Most people are still in denial.

With ten year treasuries at 2.50% plus, cap rates on real estate have to get to 6.5% or higher before prices are reasonable based on the risk. It's amazing how much more we are willing to pay for anything (real estate, clothes at Nordstrom's and Macy's, and wine at dinner when we are spending Monoploly play money - credit, instead of cash).