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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Crimson Ghost who wrote (42269)12/6/2005 6:46:54 PM
From: Tommaso  Read Replies (2) of 116555
 
I have not looked at the other 4 replies to your post, which says "I hate to admit it, but a severe real estate bear looks very improbable now. Too much debt in the system for this to be tolerated. "

There comes a time when what has to be "tolerated" is beyond anyone's control, and multiple bankrupcies and foreclosures and forced sales cannot be very good for real estate prices, to put it mildly.

Although I do not see how old-fashioned, pre-1940s, deflation is possible in the United States, I can certainly imagine many real estate properties being sold at prices that they commanded only 2-3 years earlier--and in some markets that means a 25% or larger markdown. Do you consider 25% not to be "severe"?
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