SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: gpowell who wrote (36333)7/27/2005 1:10:06 AM
From: Lhn5Read Replies (2) of 306849
 
Classically a consumption drop would cause a price decrease, not increase, as there is relatively more supply available. However, if the lower consumption is quickly met by a decreased supply, prices could rise rapidly.

There seem to be so many people ready to fight other people, but does anyone not agree that the very low interest rates of the past few years caused asset inflation and allowed excessive borrowing and consumption and that once asset inflation slows or reverses liquidity will dry up quickly, inflated asset prices will drop, and the econoy will slow precipitously?

Despite the froth comment by Greenspan, I think the Fed will try to protect real estate prices at any cost from any disorderly accelerations.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News