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

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To: koan who wrote (77895)4/17/2008 11:51:36 PM
From: mishedlo  Read Replies (4) of 116555
 
Current high PPI inflation levels will likely lead to high inflation rates - and if it does this will produce very high interest rates, and even lower home prices.

Nonsense
Price can not rise above peoples ability to pay for them, at least for long.

That is why housing is crashing now.

If wages do not go up, prices of housing will continue to drop regardless of what the cost of materials is.

Simple economics.

Mish
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