Originally Posted by
mbstone
Explain this to me: Bush/Bernanke print zillions of greenbacks to finance the federal deficit. The value of the USD is going into the tank. The price of gold, copper, gasoline and other commodities is rising to make up for the dollar's decreased value. At this rate, eventually I will have the privilege of paying off my mortgage with wheelbarrows full of dollars that are worth about as much as World War I Reichsmarks. So why is the value of my house going down?
It went down in US dollars because there was an increase in property supply, which happens because more people put their properties on the market. The credit collapse recently did that... when people were forced to sell their property in foreclosure. Which happens because people can't pay their bills, which happens because they lost their jobs, which happens because other countries had (possibly artificially) low currencies that made US labour expensive.