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

To: stockman_scott who wrote (4732)	8/28/2002 12:14:31 PM
From: MSI	Read Replies (1) \| Respond to of 306849

I get two things out of that article 1) The housing boom is infused by the high carnival-type expectations of the stock boom. 2) The Fed "has not learned its lesson" #1 sounds right, even though inflated expectations occur in every housing boom, the legacy of the NASDAQ I'm sure has added much speculative fuel. But added to that are actual dollars pulled from stock portfolios, as evidenced by the high down payments in many areas, contrary to the "zero down" stories. #2 I What would the Fed do at this point? It seems steady low interest rates until recovery is really in sight is the right thing to do. Maybe an "irrational exhuberence in housing" comment is what the author is suggesting. The problem there is that the Fed is obviously just another unelected highly politicized bureau run by and for the banks, so what they say after the results of the last few years is, to say the least, suspect.

To: stockman_scott who wrote (4732)	8/28/2002 1:05:12 PM
From: David Jones	Respond to of 306849

From that article quote: "Stock prices were hammered sharply lower over the past month..." And here I was under the impression they've been rising the past 3 weeks. "But consider some figures. In the first half of the 1990s the annual level of existing home sales was almost invariably below 4 million units per year. Since the beginning of 1999, sales have been consistently above 6 million units per year. Is this super-high level of activity sustainable?" Gee from a deep recession comes pent up demand. Who would of thought? Not the author. And whats with the "we" and "our". Does he have a turd in his pocket?)