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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (43673)	10/23/1999 10:27:00 PM
From: Ahda	Read Replies (1) \| Respond to of 116758

You are early my friend i am one heck of a good indicator my young son has more business than he can handle and in my area i believe we are back to zero houses for sale. Have a hunch i will feel it as it happens because of where i live.

To: long-gone who wrote (43673)	10/23/1999 11:39:00 PM
From: ahhaha	Respond to of 116758

I suggest looking at property prices rather than rates. The rate is always determined by other short term money market securities. Unless those rates are hovering around 1% which they would if FED ever stayed out of the fed funds market, the real estate market can't influence rates. That isn't true at even 2% on T-Bills. Demand and supply can change rates, but you have to be pretty old to have seen that in the past. On the other hand property prices indicate the degree of the wealth effect. When people are indifferent to price, that is, price elastic, it means that wealth is nominally abundant and price increases are easily tolerated. The same psychology simultaneously co-exists to a stronger degree in goods and services since they are far cheaper when the wealth effect is in full gear. Quite a large body of evidence of rampant price increases exists in real estate currently. It doesn't have the across the board flavor of the '80s, but it does indicate that money is becoming worthless. That's the wake up call for gold.