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

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To: Elroy Jetson who wrote (77797)4/16/2008 3:26:05 PM
From: koan  Read Replies (1) of 116555
 
The law of supply and demand will not be violated, whether in Seattle, Portland, Nome, or New York.

Exactly, the law of supply and demand. People need housing in Alaska and want to live in Portland and Seattle.

Once demand exceeds supply, new houses of some sort will need to be built and they will have to reflect the new inflated costs, and what people can afford, or they cannot be built at a profit. But something will be built. Seems pretty common sensical to me.

All I am saying is the new dramatic inflation will have an effect on housing prices at some point; and sooner than if there were no inflation.
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