Attracting Hot Money Tends to Wreak Financial Havoc Later

(Before It's News)

Be prepared for the next great transfer of wealth. Buy physical silver and storable food.

edegrootinsights.blogspot.ca / By Eric De Groot / April 8, 2013

This move would kill two birds with one stone. This move not only provides “hot money” fleeing the consequences of the Sovereign debt crisis abroad another US-based option, but it also supports an ailing real estate market. The real estate market is a major job creator US’s consumption-centric and asset bubble-based economy.

Luring “hot money”, however, often carries a price. While it can provide short-term benefits as discussed above, it tends to blindly concentrate to a position of instability, and will panic at the first sight of economic trouble. In other words, “hot money”, despite its short-term benefits, often wreaks significant (meaning costly) financial havoc over the long-term. Short-term benefits with intermediate to long-term cost place on another Administration, that’s a win/win setup for today’s short-term world.

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