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

To: fatty who wrote (10825)	5/27/2003 5:18:35 PM
From: Les H	Read Replies (2) \| Respond to of 306849

the government is worried about unemployment impacting housing, spending, and the most importantly, the next election. 90 percent of the bank loans is in mortgages. the deflation talk is an adjunct to their purchase of treasuries to put a ceiling on longer term interest rates to keep the housing prices high. inflation has been 4-6 percent for some time imo. the government needs positive price deflators to keep up the illusion that inflation is "low". else, the government programs that they pegged to the inflation indices would be cut across the board. how does one explain a cut in medicare, medicaid, education, defense, and other programs when clearly the costs are rising in the real world?

To: fatty who wrote (10825)	5/28/2003 1:37:17 AM
From: Jim McMannis	Respond to of 306849

Look for keynesian economics on google. Lowering rates is not a cure for inflation. The thing we have now is an inflating real estate market which is not measured in the inflation numbers and a wallowing "other" economy. One big difference is that RE gets a plethora of tax breaks. Any other tax breaks are some how labeled a gift to the rich while RE tax breaks get a pass. Meanwhile there is a wider gulf between the haves and have nots as a major transfer of wealth continues unabated. Jim