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

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To: aryana who wrote (70949)10/4/2006 12:58:01 PM
From: John Vosilla  Read Replies (2) of 110194
 
'You are describing "volatility" not deflation.'

Exactly. Now that the speculators have left and all the stupidity of the last 3 years is done with it will be common place to pick up a lot of instant equity purchasing distressed real estate. Just because a house was worth $400k last year, is going to be worth $325k in 2007 and I buy it for $175k doesn't mean deflation in costs of goods and services I or anyone else needs on a daily basis.. Same with playing swings in the stock market or folks paying $3 or 2.25 per gallon for gas.. All I see is rising costs pretty much across the board these days with less overcapacity than we've seen in years. Only overbuilt housing submarkets with a ton of rentals or lack of end users seem to be the exception. Go to any city and middle class rents have gone up easily 20-30% since early 2005. Retailers also have to pass through in order to stay in business feeling the crunch on all sides.
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