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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (70469)	2/26/2001 3:34:16 AM
From: Doug	Read Replies (1) \| Respond to of 99985

G.S.C : In my earlier post , I had indicated the real estate bubble was next. This was based on what had occurred other parts of the globe in near identical conditions. The control of the economy is the delicate balance between supply and demand whilst maintaining as high a level of full employment. Inflation occurs when demand exceeds supply. Interest rates are a proven tool used to manipulate demand. Sustained control of the economy thru expansion of credit has never been proven . It invariably leads to a bubble. In earlier times prior to 1939, the economy had been revived from stagnation by a massive increase of credit. In the 90's , because of high unemployment economic growth was again promoted thru credit expansion. It is this credit expansion that has created a feeling of virtual wealth. The same experiment had been tried earlier in the 80's in Sweden, U.K and Japan. All 3 countries paid a severe price which ended in a prolonged down turn. They also had an implosion of the real estate bubble that had resulted from the virtual wealth created. The real estate price drop is usually heralded by a few distress sales at the high end.