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Strategies & Market Trends : The Residential Real Estate Crash Index

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From: saveslivesbyday7/23/2006 12:57:09 PM
of 306849
 
Bernanke and the stock market.....

After listening to Ben's testimony on Thursday, I am not surprised that "leading economists" are all over the map on the issue of inflation, slowing economy, whether the fed will pause in August, and the direction of the stock markets.

I don't think he knows what to do either, but as far as an August hike I'm not sure it will make any difference in the long run.

If he raises, we'll undoubtedly hear the "now they're done" mantra. Of course, this is what many have been claiming around every fed meeting for the past year.

What if they pause, but the language suggests "further rate hikes may be necessary?" This uncertainty isn't going to sit well with the markets either.

Regarding the effects on RE, IMO it really doesn't matter. The bubble has burst - at least as measured by home buyers' psychology, and certainly the no one can deny that the Homebuider Stock Bubble has burst.

If the lagging indicators are in fact downplaying inflationary risks, then history seems bound to repeat itself.

- Saves
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