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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: mishedlo who wrote (10555)3/20/2004 5:24:25 PM
From: Sawdusty  Read Replies (2) of 110194
 
mish:

"I also contend it would stop housing cold!"

While I certainly agree with most of your post, I'd like to offer a different view on housing. There is a possibility that a .25 BP increase could fuel it even more, although it would be short term. When bubbles are taking place, everyone wants a piece and do not want to miss out.

Interest rates have been low for some time, perhaps people expect them to last forever and feel in no rush to buy. An increase could generate panic buying for those that feel they would be left out. I do think it would be of short duration, but it's just an opinion......worth what you paid for it. -g-
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