Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: koan who wrote (77771)	4/16/2008 12:37:12 PM
From: mishedlo	Read Replies (2) of 116555

If we start running 10% (or high) inflation, I would expect housing prices to float up with inflation sooner or later. Exactly how are people going to afford them? They can't afford them now. More people are going to be thrown out of work. There will be still more foreclosures and more housing inventory. Sooner or later may be 4 years from now, or 10. In the meantime houses will keep falling until they are affordable. All these inflation theories die on the vine with global wage arbitrage, outsourcing of jobs, and now a recession with declining jobs. Pray tell how are people going to afford to buy houses. Remember that lending standards have tightened and down payments are required. There are no subprime loans or no-doc loans now. Mish

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