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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: fatty who wrote (10825)5/27/2003 5:18:35 PM
From: Les HRead Replies (2) of 306849
 
the government is worried about unemployment impacting housing, spending, and the most importantly, the next election. 90 percent of the bank loans is in mortgages. the deflation talk is an adjunct to their purchase of treasuries to put a ceiling on longer term interest rates to keep the housing prices high.

inflation has been 4-6 percent for some time imo. the government needs positive price deflators to keep up the illusion that inflation is "low". else, the government programs that they pegged to the inflation indices would be cut across the board. how does one explain a cut in medicare, medicaid, education, defense, and other programs when clearly the costs are rising in the real world?
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