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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: TimbaBear who wrote (44649)1/17/2006 5:13:16 PM
From: ild  Read Replies (1) of 116555
 
<<<Housing due to the speculative nature of the last few years, high leveraging and rising rates will experience a contraction initially and then it depends on how bad the currency debasement gets. The worse the debasement, the more likely that housing will reach a plateau and perhaps even rise from there.>>>

Another big difference between RE and hard commodities is that it's easy to build new RE. Don't you think that the builders will continue to build more and more houses until supply and demand (real, not speculative) will reach a balance? More general question: do houses have to be expensive?
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