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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Haim R. Branisteanu who wrote (244601)4/17/2010 7:18:45 PM
From: TobagoJack of 306849
 
<<The State Council reiterated the rules unveiled Thursday that banks should raise the minimum down payment for second-home purchases to 50% from 40%, while requiring mortgage rates to be no less than 1.1 times benchmark rates>>

... yeup, that ought to do it ;0)

nominal income boosted 10-40%
real income in process of doubling again w/i 8-10 years
genuine savings heading up even more
outlets for genuine savings can only take care of so much excess and let in such a lot of surplus
interest rate on deposit is truly next to zero
supposed need for real estate is 10 new york cities within a bit over same number of years, plus a few chicagos, los angeles, ... and bostons
one-kid policy is no more
efficiency of secret weapon paper money printing press is rising
overall level of debt really just getting started on its 70+ years super cycle
600-years of pent-up demand about 30-years sated

china is comprised of two economies
- #1: robust coastal / mega city
- #2: tepid inland / rural
- connecting two mega cities beijing and tianjin requires 200 km of super highway and duper rail
- networking the counties and townships between beijing and tianjin requires 600-1000 km of roads and other communication means
- china is now suffering a skilled/unskilled labour shortage that a salary boost of 20-40% is being implemented this year by and by all, all due to the long enough worked-for policy of disseminating economic reform/growth from economy #1 to economy #2 having supposedly taken hold that the previously migrating labour of folks working in coastal cities are now staying home, where the growth has finally arrived
- the coastal growth was powered by cheap labour and joined by cheaper capital, and now enhanced by cheaper still intellectual capital
- the inland growth is enabled by cheap everything, and genuine demand pent-up over 600 years
- the inland growth is enhanced by reform, of property ownership (farmers can transfer their land) and should be helped along by demographics (folks wanting not only more space, but more babies)

should the above read be correct, then we have not seen anything yet that would be termed astounding, when we view with 20/20 hindsight 30 years from today

cyclical hiccups coming for sure
structural cracks maybe
drama either case

recommendation: dispose of paper money
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