Obama failed at the G 20 to accomplish anything useful and followed that by failing to conclude the S Korean trade agreement because he wanted to retrade a done deal. Geithner was no better. Instead of solving any of the major issues that simply left the situation in their version of extend and pretend, except this is far more serious than a loan extension. The total lack of leadership by the current administration and the refusal to deal with the deficit at home, has only served to make the world situation worse.

The implications for the US economy and real estate values is not positive. We now have capital moving to Brazil and other emerging markets in huge amounts to gain yield and a better currency outcome. While the low dollar may seem like it will attract foreign capital to invest here, there seems to be a bigger concern that the administration is not dealing with the real issues and is willing to devalue and potentially set off a trade war through currencies. Everyone but Obama and Pelosi seem to have heard that the voters recognize we have a major problem with deficits and a stalled economy. Pelosi wants to have a party to celebrate what they have done, even though the voters revolted and rejected. And now she says she will stay as party leader to fight any attempt to make things right. Does anyone think foreign investors see what is going on as a positive for investing in the US real estate.

Obama can’t even lead on taxes, and waffles all over the place. Harry Reid, who bussed casino workers to the polls and paid them with K Mart prepaid cards, is still there and still saying we will not back down on raising taxes for anyone over $250,000. The Tea Party crowd, led by that terribly misinformed father son team of Ron and Rand, want to eliminate our central bank. That really helps build confidence in foreign investors. US investors are no more confident and have begun to move substantial amounts of capital to more promising nations.