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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Tommaso who wrote (9072)7/12/2004 2:06:45 AM
From: Haim R. Branisteanu  Read Replies (1) of 116555
 
Tommaso as long as the FED is providing liquidity - e.g. prints money the debt is sustainable IMHO. The key are the flow of goods and services. Keep in mind we are in the greater FOOL period for many years and it seems it is working :(

As related to housing this is an enigma as people need to live some were and as long as debt service is more or less equal to rental it will flow trough - Further one of the substantial savings ignored are the fact that many low income families who own their dwelling try to keep it in good repair and add improvements from time to time and by this eliminating much of the future problems with decay of rental property and inner cities RE.

No one put a price on this but intuitively it seems to be working

(as a side remark to realize what others are thinking – I was offered an assignment for a RE developer to provide mezanine financing, who wants to start over $1 billion in projects in Las Vegas, NV, Forth Meyers Fl,. and Philadelphia, PA. ... apartments priced north of $250K)

I offered my two cents that the projects are risky to start now so close or at the RE top, proving my point with government statistics, various articles from the press, slowing retail sales ratio of population growth to RE housing starts HSBC analysis personal bankcrupcies and so on.

End result instead to say thank you, the response was that I am to pessimistic and there is no need for my services. ………….. financing? no problem even Lehman chipped in)
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