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To: Victor Lazlo who wrote (123532)	4/11/2001 7:04:18 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 164684

victor, understood. do you have any stats that show this is occurring at a rate higher than the past? i know folks flipped real estate constantly in the mid to late 80s. if it is occurring close to the same now as in the past, it is a wash and we're back to the data we have, albeit far from perfect data. the data which shows an unsustainable trend that has resulted in excessive demand.

To: Victor Lazlo who wrote (123532)	4/11/2001 7:49:39 PM
From: GST	Read Replies (2) \| Respond to of 164684

Victor: Real estate speculation is not "savings" any more than stock speculation is "savings". Do you not understand the difference? It is people who were too thick to understand the difference that helped pump the bubble -- this tends to be true also in real estate. In markets with rising asset prices people borrow money and buy assets hoping to sell them for more money later -- this is speculation, not savings. The same is done with stocks -- putting money at risk in the hope that assets prices (stock prices) will rise. Some people also leverage these bets -- they buy on margin or mortgage other assets. If you speculate and make money, good for you. But many speculators lose money -- too bad for them. In neither case is this "savings" -- is this too hard to understand? When I buy real estate equity, not to mention when leveraging that equity by borrowing 3 dollars for every dollar of equity -- when I do this I am putting that money (the equity) at risk. I risk losing the money if the asset falls in value -- and real estate is notorious for BOTH rising AND falling in value. Stocks go up and down in value as well - as I am sure you have noticed. You might want equity in real estate. You might want equity in stocks. But just because you want to own equity does not mean that you can call it "savings". It isn't.