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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Sully- who wrote (44285)11/16/2001 11:59:44 AM
From: Jim Willie CB  Read Replies (1) of 65232
 
is Yaley that Shiller guy?
I expect a slow slide on real estate
rather than a crash
sharply lower mortgage rates has helped sustain the housing market
but the oft-neglected employment factors in also
so many pundits believe rates make the story
but the significant effects are shared: rates and jobs
we will see
the high end of property prices is and will continue to be the most vulnerable
when Lennar and other home builders go bankrupt,
then you will know the crash in prices is underway
hasnt happened yet
I give it 2:1 odds against a RE crash

the upcoming Fed-stimulated recovery next winter/spring will forestall such a crash
the main question in my economic minion mind is whether the recovery is very temporary, leading to another recession
after much consternation, methinks the fleeting nature of the recovery depends greatly on the level of bankruptcies and other cleaning off the books of bad debt

I saw Burlington Northern went bankrupt yday
another wellknown name
dont be surprised to see Xerox dead & buried before long
/ jim
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