Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (884)	6/28/2002 11:30:29 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 89467

no, inflation will NOT spill into real estate RE has already benefited from safe haven taking advantage of lower rates "at any property price" remember RE is supported by debt from mortgage next comes higher rates and more unemployment so far RE has been all about rates, rates, rates strong employment has been assumed forever forward low mortgage rates have been assumed forever forward neither will be the case for many more months I think the price inflation will have the greatest effect on interest rates which will wreak untold havoc throughout the economy if you think RE will benefit from inflation, then we sit on totally opposite corners of the room it will be bought by some who mistakenly believe it will continue to be a safehaven forever but keep in mind that RE is up over 100% since 1993 at least in many metro areas do you think the RE bubble lasts forever? do you think RE will be the only asset class to be spared in the world's worst deflationary bust in history? it is merely the last to get hit because up to now it has been the most protected via Fed policy but Fed policy has run its course, done, kaput, end of road now the vicious cycle hits everything that was safe, sorry it is now all about mortgage rates, purchasing power from paychecks and the household ability to maintain monthly payments & taxes & insurance & utilities & maintenance & everything else with the cruel pinch trickling down from feds to states and to cities/towns, property taxes will rise, then rise more, then rise even more, until cities are abandoned jobs are gonna be shed soon to improve earnings jobs are gonna be shed soon to offset the eroding profit margins from a declining dollar / jim (go Buckeyes, OSU 1973)