The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: GraceZ who wrote (81206)	7/15/2007 5:05:40 PM
From: GST	Read Replies (1) of 306849

Actually Grace you have it wrong on housing and inflation. A house is not a promise to pay cash in the future -- while that is what a bond is, along with regular cash payments to pay "rent" on the money. Housing on the other hand is a hard commodity -- and yes it can be a useful one at that. Housing prices go up in inflationary times because money is depreciating and is risky to hold. People take a short position on cash by borrowing to buy a house and then go long housing by buying a house -- that is the traditional relationship between cash and housing in an inflationary environment -- short cash, long housing.

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