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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: russwinter who wrote (14864)11/6/2003 11:19:20 AM
From: DoughboyRead Replies (1) of 306849
 
Russ, maybe this should be posted to your bubble thread, but it seems to me that for you to be right that this is a bubble and it will burst, two things would have to happen, first, interest rates would have to rise, and, second, we'd have to go into a double-dip recession. I grant you that the first thing is going to happen, but I just don't see the second shoe dropping. Even if it does happen that we go back into recession, what's to prevent the Fed from again cutting rates and steadying the housing market? We would need some period of stagflation (no growth, high inflation) to burst this bubble, and even then, it would only be regional or isolated markets.
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