QE3 and Real Estate - Your thoughts

[Abdul R.]

As you may have heard, today Fed annouced QE3 of 40B per month (i.e. printing press) with no end in sight. Precious metals soared instantly along with the stock market. I wonder what it means to the real estate market. Increased money supply and currency debasement should mean property value is going up. However I can't see how this work out with economy still in the recovery mode (people with no jobs, jobs with less wages and/or jobs with insecurity). I am new to real estate. I am curious to know what the experienced real estate investor has to say.

[Rich Weese]

We're more screwed. We just delayed the crash a bit longer. Another 85 BILLION per month flooding the system for unknown period of time. This will just make the BOOM bigger when inflation starts. Nothing more than the Fed can do. Can't lower rates any further and additional funds flooding the market. Our buying value will drop even more. Our dollar is worth less than Canada now and I'm sure Mexico will pass us soon. At least my Cancun condo will be stabilized. I never would have thought we'd be where we are now. Nine years ago(approx) Canadien dollar was $.65. A couple weeks ago OUR dollar was only $.97. I guess they must've REALLY gotten a lot stronger...

http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/09/13/qe3-what-is-quantitative-easing-and-will-it-help-the-economy/

Rich