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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ahhaha who wrote (50566)1/20/2006 11:12:49 PM
From: mishedlo  Read Replies (1) of 110194
 
Your "bubble" requires falling prices, but you haven't given the cause of the falling prices.

How about

1) falling real wages
2) Home prices above people's ability to pay for them
3) negative savings rate - a sign of stress
4) outsourcing of high paying jobs in favor of jobs at walmart
5) rising defaults - as sign of stress
6) rising bankruptcies - a sign of stress
7) GDP supported by cash out refis - not sustainable
8) lender dropping prices 10% or more overnight
9) rising inventories
10) declining sales
11) massive numbers of people opting for interest only and pay option loans as the only way to "afford" a house
12) declining credit standards - bad enough to even alarm the FED
13) Rampant speculation by the masses
14) Home prices 3+ standard deviations above norm
15) people like you ahhaha who deny the bubble in spite of overwhelming evidence to the contrary

ahhaha point #15 is key.
If everyone believed there was a bubble, prices just might keep rising. People like you help make the case.

Mish

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