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: neolib who wrote (239513)	2/26/2010 1:20:03 PM
From: Perspective	Read Replies (2) of 306849

You're very right - international effects are very important as well. Our trading "partners" are striving to maintain the status quo as well, out of fear for what would happen otherwise. Of course, it probably will happen ultimately anyway, and it will be good for the rest of the world. But they've gotta fight the unknown. I would add that the credit bubble is a very global phenomenon, and it's another part of why the Fed can't succeed. Bernanke can't control what the others do, and much as Greece is stuck with monetary policy for the rest of Europe, we're stuck with whatever individual countries must do domestically for their own economies. Capital markets are global. Some other economies may be normal and functional, and thereby eventually require rationalized interest rates. China and Australia have built what appears to be enormous real estate bubbles of their own, and they may have their own day of reckoning. If that were to happen, it would confound the Fed's efforts due to the unintentional strengthening of the dollar that it has been trying so hard to trash. `BC

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