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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: jrhana who wrote (1727)	5/23/2003 6:55:43 AM
From: zonder	Read Replies (2) \| Respond to of 4912

it could take a long time to burst or maybe the air will be let out gradually Even if so, your friends "buying a house with the idea that it will go up" are still wrong. Besides, I wouldn't count on it. That would be a very risky bet, with very little, if any reward. History suggests that bubbles tend to burst, rather than gently deflate. As for the possibility that it may "take a long time" - I agree that it will probably not burst today or tomorrow or in two months. It will continue to grow as long as the US public stays convinced of a risk of deflation (although HOW they believe it even now, with 3-4% consistent inflation over the past six months, I cannot say), and Fed keeps interest rates low. But - What do you think will happen when interest rates start to rise, even if very slowly? Boom! It is interesting that people carrying Euros sometimes find the prices not so outrageous Prices of.... what? Let me put it this way, my EURs appreciated by 18% against the USD. I expect to do a LOT of shopping in the US in a couple of weeks :-)