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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (3506)	7/20/2002 8:33:03 PM
From: David Jones	Read Replies (1) \| Respond to of 306849

"Our goverment wants people to own their homes, period." True for me, my first home was motivated by need for a tax shelter.

To: Tradelite who wrote (3506)	7/21/2002 11:51:33 AM
From: HiSpeed	Read Replies (1) \| Respond to of 306849

Snip from Barron's interview: An Interview With Jeremy Grantham -- The G in GMO, a Boston-based money manager with $25 billion in institutional assets -- otherwise known as Grantham, Mayo, Van Otterloo -- is a tough act to follow. No more so than when he, himself, is called upon to live up to the virtuoso performance he gave a year ago in these pages, on Aug. 6, 2001. Then, he called the market to a T. Drawing on wisdom and computer models compiled in more than 30 years assaying markets and asset classes worldwide, no one had a better handle on the course the stock market would take and where it was possible to profitably hide than the 63-year-old Grantham. Q: Are you concerned about consumer spending? A: I have been worried for two or three years that the savings rate is too low. The savings rate will go back up. It needs to go back up for a healthy economy in the long run. As it goes back up, it will be a drain on consumer spending. The American consumer has been amazingly willing to keep on spending. It's been a nice sustaining factor. But reading the Economist recently, I was reminded that in Japan in the first two years of its bubble breaking, Japanese real estate -- land and property -- went up even as the Japanese market went down 50%. You might think the real-estate market would eventually be affected by animal spirits dropping a bit and consumer confidence coming down. As people become concerned by rising unemployment, they will likely save more. As they realize their pension funds are not in the shape they thought they were, they will save more.