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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: mishedlo who wrote (267310)11/14/2003 12:18:54 PM
From: zonder  Read Replies (1) of 436258
 
I am not sure I agree with you that the housing bubble will collapse, since Fed is doing all it can (including lying about a "danger of deflation") to keep interest rates low.

If interest rates stay at these levels until jobs start picking up significantly, and it looks like Fed is determined to make sure of that whether that bring us rain or shine or inflation, there is no reason why the housing bubble should collapse. Deflate, surely. Explode, probably not, if they keep interest rates low long enough.

If I were in their place, I would just RAISE the interest rates, ANNIHILATE those fools who took triple mortgages AND spend like there's no tomorrow, and thereby IMPROVE the genetic stock of the population :-)

But that's just me and my loving ways -g-
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