The Epic American Credit and Bond Bubble Laboratory Message Board

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

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To: russwinter who wrote (30416)	4/12/2005 12:03:49 PM
From: John Vosilla	Read Replies (2) of 110194

As these folks get in trouble, and turn over their keys, I can make a good case that rents will go higher, not lower. I predict housing (and apartment building) prices decline, but rents will actually increase some. You constantly think universal deflation, I think in terms of maladjustment, which is IMO the correct model to use. Perhaps the end result is your thesis along with Mish's Japanese style version of slowly deflating asset values. I'm seeing operating costs skyrocketing for property investors at double digit inflation figures. Even a decent uptick in rents won't even begin to cover that. Remember the good old days of 9-10% cap rates? When those valuations are back then we hit bottom. Conceivable that rents could double or even triple in 7+ years while values drop 30-50%.

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