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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (30682)4/17/2008 5:01:54 AM
From: Oblomov  Read Replies (1) of 78715
 
The bubble mentality that originated in the 90s notwithstanding, houses are just a big-ticket consumption item, and are not an investment unless they are used as income producing property.

If prices fall far enough, they will be acquired and held by strong hands. This adjustment can happen quickly, or the lack of planning of the present holders can be papered over by putting them on the dole queue.

The government seems intent on generating the worst of possible outcomes: a slow, grinding decline in real housing prices, accompanied by a bailout that promotes profligacy and punishes personal responsibility.
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