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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: mishedlo who wrote (37622)8/11/2005 1:29:15 PM
From: John VosillaRead Replies (1) of 306849
 
Okay so you dismiss more people needing food, clothing and shelter, spending money, the multiplier effect and job creation/business formation as trivial in the whole scheme of the credit/coastal housing bubble. I can buy that as being one component of many working against your scenario. We really do need our banking system to collapse along with our commercial RE markets and stock markets. Two of the three did roughly from 1989-93 along with Japan and much higher interest rates than today but we survived. Thus if the second largest economy in the world is on an upswing, our stock markets remain stable and interest rates don't rise dramatically your scenario won't happen.
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