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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (2241)	3/16/2004 10:04:53 PM
From: Elroy Jetson	Respond to of 116555

You have a huge shake-out in housing prices in Australia because the Australian Reserve Bank twice raised rates 1/4%. Once the property market is selling at levels where rents do not support prices, it is easy to change sentiment and end the bubble. A similar decline in home sales occurred here in early 2002, but the Fed (or perhaps random events, not that I believe that) arranged for long term fixed rates to decline from 7.25% to 5.25% so the bubble remained intact. A similar decline in sales began last Spring. It remains to be seen what will be the outcome.