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

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To: Crimson Ghost who wrote (30007)4/4/2005 11:57:22 AM
From: CalculatedRisk  Read Replies (3) of 110194
 
Maybe home prices will drop faster than I expect. That might be especially true on the coasts - I wouldn't be surprised to see a 10%-15% drop very quickly and then a normal slow deflate.

My view of a slow drop in prices, and a large drop in transaction volumes, is based on previous RE bubbles and the market friction in housing.

Will the speculators (23% of nation, not just bubble markets!) make the prices fall quicker? Maybe. Heck, I'm still trying to convince a number of economists that there is a bubble!
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