Wealth Today

Much of the world’s economy is based on the dollar and the dollar’s value has dropped. As a result, the price of food is increasing on a global scale. The economic advisors from seven of the largest economic-countries met along with the International Monetary Fund and the World Bank Group.

All members recognized the impact that the falling dollar has had on food, and more important the all agree that price control and subsidies are not the answer because they “tend to create fiscal burdens and distortions.”

Interestingly enough, for the first time in a long time, the G7 is breaking the mold by bringing into action a move to slow the foreign exchange markets, hoping to put a halt to the dollar’s decline.

With reports such as this one at Bloomberg, shed some alarming light into the dark world of the U.S. real estate economy. Some of the highlights include a 16 percent decrease in the average price of a home in Tampa while San Diego is the third worst in the nation, with a 21 percent plummet in value. Sacramento’s value dropped the most at 28%.

Watching this happen, I kind of believe it’s just beginning. I don’t know exactly how long it will continue, but I’m sure it’s not over, and I know things will turn around again. I feel that we’ll be experiencing more factors over the coming months that will be pulling down the value of home prices even more. We’re also seeing an increase in the unemployment filings, and as those increase we will likely expect to a corresponding increase in foreclosures which will affect the overall value of homes. Interestingly enough, the decrease in value will also affect tax revenue related to price of homes which has a negative impact on civic infrastructure.