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

To: mishedlo who wrote (7544)	6/4/2004 8:14:36 PM
From: mishedlo	Respond to of 116555

I have a mortgage broker on my FOOL board as well. He responds to Sonnypage.... ======================================= Hi sonnypage, Your scenario is missing the natural dynamic of demand elasticity. If rates increase to a level where buyers (without any change in income due to the same factors that cause the rate increase... not so likely) now qualify for less of a purchase than they would have otherwise, then the sellers (as they are begrudgingly dropping their prices by the tens and fifties of dollars, not thousands) will ONLY drop until they find the liquidity of the qualified buyers. EVERYTHING has to go wrong, with NO counterbalancing benefits to ANY niche of the market in order for yoru collapse to occur. Sure... it's POSSIBLE. But nothing to lose sleep over, IMO. That open invitation to lunch at the Thai Thai still stands. I hope to see some of you down here on the north side of Atlanta one of these days. My best to you all. Whenever I'm down in your gorgeous neck of the woods, and if you'll stil have me, I'll take you up on that invite! Cheers, Dave Donhoff National Mortgage Broker/Banker