Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (14864)	11/6/2003 10:31:08 AM
From: MulhollandDrive	Respond to of 306849

>> Once credit becomes more "normal", all real estate (and bond) speculators will be in trouble.<< even if credit remains low, in the areas like CA where limited supply in a low interest environment has driven prices to soaring heights..... the affordability index is heading in the wrong direction car.org

To: russwinter who wrote (14864)	11/6/2003 11:19:20 AM
From: Doughboy	Read Replies (1) \| Respond to of 306849

Russ, maybe this should be posted to your bubble thread, but it seems to me that for you to be right that this is a bubble and it will burst, two things would have to happen, first, interest rates would have to rise, and, second, we'd have to go into a double-dip recession. I grant you that the first thing is going to happen, but I just don't see the second shoe dropping. Even if it does happen that we go back into recession, what's to prevent the Fed from again cutting rates and steadying the housing market? We would need some period of stagflation (no growth, high inflation) to burst this bubble, and even then, it would only be regional or isolated markets.