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

To: GraceZ who wrote (2782)	6/27/2003 2:03:31 PM
From: NOW	Read Replies (1) \| Respond to of 4907

I see. and that explains having drawings of helicopters dropping money in their publications. you really are a trip.

To: GraceZ who wrote (2782)	6/27/2003 2:36:03 PM
From: benwood	Read Replies (1) \| Respond to of 4907

"...and home appreciation is exclusively due to falling rates" This isn't true. Home appreciation has also been caused by the uplifting of the more expensive end of home sales from those who have benefited from the great wealth transfer in the past two decades. This group is small but mighty and turns over houses annually. From the Seattle Times: "But there's another seldom-discussed factor that's very, very powerful, says Baker, chief economist for the American Institute of Architects. That's this country's concentration of wealth. Some 6.5 million households — or 6 percent of the population — drive the real-estate economy by buying new or existing homes annually, Baker says. And disproportionately they're those earning the top tier of incomes." archives.seattletimes.nwsource.com

To: GraceZ who wrote (2782)	6/27/2003 3:22:11 PM
From: LLCF	Read Replies (1) \| Respond to of 4907

Myths?? <It's the real world as determined by all material factors as reflected in money market rates that is. If anything, FED is resisting a further drop in those rates, but belatedly is following them down.> The fed increased it's assets by 8.7 billion in the banking week ended may 28th.... how? Because it sat there and sold at THEIR ask rate. They did not follow rates down that week... do you have real data showing that in fact your assertion is more true in general than it was that week? DAK

To: GraceZ who wrote (2782)	6/27/2003 4:11:23 PM
From: Don Lloyd	Read Replies (1) \| Respond to of 4907

Grace, It isn't FED's money creation which is causing the low rates, and home appreciation is exclusively due to falling rates. Are you sure? Message 19059139 Housing and real estate -- This would be expected, under normal conditions, to be an area where prices respond relatively quickly and intensively to increased bank credit, the mechanism of increased money supply that is actually used. People who buy houses almost always do so through bank credit, and they will generally do so at times at which they are not demonstrating a demand for money to hold. They obviously have a demand for the house, and the supply of land and houses is often rather limited. All of these factors, money supply high, money demand to hold low, house supply low, house demand high, tend to drive the prices of houses up. In addition, houses and all other forms of goods that provide their services in an extended future, are valued higher in the present when the rate that discounts their future value back to the present is lower. This lower interest rate is exactly what results when the supply of loanable bank funds is increased. It is clear that the prices of most houses and real estate have gone significantly higher in the recent past, largely, I am conjecturing, in response to increased bank credit, and the associated reduction in interest rates. Regards, Don