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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Lizzie Tudor who wrote (17577)2/20/2004 8:34:42 PM
From: Elroy JetsonRead Replies (2) of 306849
 
In my estimation, merely keeping rates low will not suffice. The bubble can be sustained only by continuing to lower rates.

The Fed can lower short-term rates another 1% and they can in theory lower long term rates another 5.5% by bypassing the banking system and making home loans directly from the U.S. Treasury.

And then what? Japan is leading the way, by following the advice of our Fed. Our Fed is in no way dissuaded from their faulty advice by it's failure in Japan. They are merely convinced that Japan didn't follow their advice quickly enough. Thus our Fed has been plunging ahead with their bubble sustaining plan at double-speed. We'll be in serious trouble in record time.
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