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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Wyätt Gwyön who wrote (36139)7/24/2005 3:57:17 PM
From: Lhn5Read Replies (1) of 306849
 
<<no, it's not ridiculous. if you think it's ridiculous, that is proof that you have not studied past bubbles. they always revert to trend, and usually overshoot on the downside.>>

That is certainly true for paper assets, (and since you can't really eat tulips or sleep under one, I consider tulips a paper
asset) but not for hard assets like real estate.

<<so, it would not be surprising to see a much longer fall. also, if one considers that today's inflation rates are much lower than in the 1970s, then an increasing amount of price damage will have to be inflicted nominally rather than via inflation. that is a scary thought when you think about all the leverage out there today in RE.>>

There are all kinds of inflation. You I think are referring to consumer price inflation. There is also currency and asset inflation, both of which are going strong, and I think consumer price inflation is occurring at a rate significantly higher than the government statistics allow revealed.
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