A Good Bet, The Housing Horror in Mr Rogers Neighborhood

Slowing down... Japanese exports grew at the slowest pace in two years in September as shipments to the U.S. fell.

The Housing Horror could hand around for years...

is a decent case study and deserves attention. Remember, Japans housing deflation lasted 15 years. The good news? We won't get hit that bad.

The Nattering One senses that we are in the first year of a 5 to 10 year deflation.

Depending on location and the micro economic climate, as macro economic conditions in our emasculated service based economy will stink for years to come.

A good bet... Warren Buffets bet on Prefab Homes.

For the past few years, the traditional customers for factory-built housing were able to use subprime financing to trade up into homes they really couldn't afford.

Now that subprime lending has vanished, those customers will return to the factory-built sector.

Mr. Rogers neighborhood...

Jim Rogers, chairman of Beeland Interests and former partner of George Soros:

"I'm in the process of -- I hope in the next few months -- getting all of my assets out of U.S. dollars.

I'm that pessimistic about what's happening in the U.S. It's the official policy of the central bank and the U.S. to debase the currency
.

On bonds: Bonds will be a terrible place to be for many years and will in fact be going down for many years.

On currencies: I don't see how one can really lose on the renminbi in the next decade or so. It's gotta go. It's gotta triple. It's gotta quadruple.

On the equities and the carry trade: The carry trades in yen and francs will "unwind someday," which will send the currencies "straight up."

On commodities: where the big fortunes are going to be made in the world in the next five, or 10 or 15 years.

The current bull market is going to last until sometime between 2014 and 2022.

On food prices and drought: The number of hectares devoted to wheat farming has been declining for 30 years, the inventory levels of food are at the lowest level since 1972.

Suppose we start having droughts again. God knows how high the price of agriculture is going to go, so that's where I'm putting more of my money now than in other things.


I think I'm going to make more money in agriculture than I make in precious metals. Hattip to Bloomberg.

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