Vail Homes

    A few weeks ago all you heard from the pundits was hand wringing about DEflation, the serious damage to the economy that would result and the urging of the Fed to continue to pump continuing liquidity (read: print huge amounts of  money) into the financial system to save us from a worsening deflationary spiral.  What a difference a few weeks make!    With the recent improvement in the stock market and some more positive reports from the financial markets, suddenly the talk has turned on a dime.  Now all the experts are terrified about the INflationary effects of all this new money on an improving economy. Have we pumped so much liquidity into the markets now that we are entering a period of hyper-inflation?    From my experience, I think you can count on it.  I am anticipating a marked increase in the inflationary rate as soon as this summer.  During times of inflation, knowledgeable investors turn to hard assets like gold, commodities and real estate.  Real estate in particular is an effective hedge against inflation.  Another direct result of inflationary pressure is a rise in interest rates.  You can plan on substantially higher home loan interest rates by fall.   With prices and interest rates low and huge inflationary pressures just over the horizon, the smart money is looking to real estate - Vail Valley real estate!