Obama failed at the G 20 to accomplish anything useful andfollowed that by failing to conclude the S Korean trade agreementbecause he wanted to retrade a done deal. Geithner was no better.Instead of solving any of the major issues that simply left thesituation in their version of extend and pretend, except this isfar more serious than a loan extension. The total lack ofleadership by the current administration and the refusal to dealwith the deficit at home, has only served to make the worldsituation worse.

The implications for the US economy and real estate values isnot positive. We now have capital moving to Brazil and otheremerging markets in huge amounts to gain yield and a bettercurrency outcome. While the low dollar may seem like it willattract foreign capital to invest here, there seems to be a biggerconcern that the administration is not dealing with the real issuesand is willing to devalue and potentially set off a trade warthrough currencies. Everyone but Obama and Pelosi seem to haveheard that the voters recognize we have a major problem withdeficits and a stalled economy. Pelosi wants to have a party tocelebrate what they have done, even though the voters revolted andrejected. And now she says she will stay as party leader to fightany attempt to make things right. Does anyone think foreigninvestors see what is going on as a positive for investing in theUS 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 themwith K Mart prepaid cards, is still there and still saying we willnot back down on raising taxes for anyone over $250,000. The TeaParty crowd, led by that terribly misinformed father son team ofRon and Rand, want to eliminate our central bank. That really helpsbuild confidence in foreign investors. US investors are no moreconfident and have begun to move substantial amounts of capital tomore promising nations.