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

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From: Mike Johnston7/26/2006 8:05:21 AM
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Moral hazard in the housing market ?
The Fed is very concerned about housing market retrenchment, this when prices have barely started to decline.

Too bad they were not concerned, when prices were leaping by 50% a year and speculators were buying multiple houses each with interest only neg am loans in frenzied bidding wars.

Berry crying about the housing market, NAHB complaining to Congress.
I think the groundwork is being laid for a Bernanke put for housing, because housing is vital, nothing is more important.

Fed Is Showing Concern Over Housing Retrenchment: John M. Berry
July 26 (Bloomberg) -- Nothing has been more important in driving the U.S. economic expansion that began nearly five years ago than housing. It could be just as vital as growth slows.
Federal Reserve officials are watching warily to see whether the housing retrenchment that began late last year will remain modest or turn into a rout that could damage the economy severely.
bloomberg.com
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