Quote:
Originally Posted by Sprintey
The flip side to that is the central banks have printed such an incredible amount of fiat currency in this emergency (Fed balance sheet just hit 7 trillion, Australian QE) that if it gets beyond all the holes in the levee they are trying to fill, it will flow into asset classes like classic cars...
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There will be forced sales, but at what price? Since deregulation in tne 80s there has been so much money and credit created that has mostly flowed into housing, with some going elsewhere. We have already seen that flow into collectible cars, with stupidly high prices even for unrestored wrecks.
Like houses, each dollar now buys less house and less classic car. A ponzi scheme suppprted by ever growing gdp, population and lending to increasinly marginal borrowers. Ezi rates to buy stuff we dont need, with money we dont have, to impress people we dont like.
Like most assets, timing a sale is dificult. A potential seller may not see their car as an assst, just something that happens to be worth a lot. So the decision to sell may not be terribly rational. Forced sales certainly arent.
Anyhoo....the other point is that i keep hearing of potential buyers that will swoop on bargains. Wont happen for most. If there are forced sales, they will have been influenced by wide ranging events that affect many people. Mass unemployment, closure of whole industries, etc and a change of social mood.
As i wrote in another thread, there is no point in bagging a 'bargain' if it means putting your own finances at risk. Job loss and business failures happen.
Conspicuous consumption is out, frugality and minimalism in as the baby boomer retirements look increasingly unaffordable. Less cruises around tbe pacific, more motel stays in regional areas.
Keep or sell, then? Up to the individual. Id be suggesting sell if it eases debt load. Maybe thats just me. Others may have more risk tolerance.