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To: crdesign who wrote (3519)	3/1/2003 3:22:35 PM
From: philv	Respond to of 5423

Plunging property values now a big problem in England, Hong Kong where they are off 60%, Singapore, and as we all know JAPAN. Loans based on Japan's real estate bubble are what is responsible for the continuing problem with their banks, carrying dead loans forward, year after year, without a hope of ever collecting. Whenever the FED lowers int. rates, pumps money into the economy, housing is the main beneficiary, housing is what is targeted because of the very quick turn-over of funds and the economic stimulation that it supplies, especially new housing. All part of the moral hazard, consequences of inflationary monetary policies. Would you lend out long term, money at 5%? Its crazy, knowing that prices are skyrocketing in various sectors. But the FED is TRAPPED. Gotta keep priming the pump or else it will stop. The only hope, is that somehow, miraculously, "business" will suddenly pick up, profits return, and markets and confidence surge. Slim chance? Maybe some kind of outside stimulus. Maybe a war will do it? Has always worked in the past! Phil (not my recommendation)

To: crdesign who wrote (3519)	3/1/2003 3:28:48 PM
From: loantech	Read Replies (1) \| Respond to of 5423

jim/crd Softening of prices depend on what levels of price. Homes in the 350,000+ range are weakening. Homes in the 200,000 range and less are still firm with some pockets of weakness even then. But demand is fine in the Seattle and Portland areas are ok. But maybe a Realtor should chime in???????? The Fed and banks are goosing things well though as I work in the loan end of things and 15 year terms are creeping to under 5.00% and a Fixed 30 year amortized for 30 due in 7 can be had in the very low 4.00 range. That is cheap money for 7 years. Tom