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 (7559)	6/5/2004 10:51:17 AM
From: yard_man	Respond to of 116555

I guess you saw the northern trust article??

To: mishedlo who wrote (7559)	6/5/2004 10:59:40 AM
From: yard_man	Read Replies (1) \| Respond to of 116555

this is good -- don't want to hear from any realtors on the thread about it <ng> >>Worse yet, when the market for real estate collapses, prices are less likely to collapse because when buyers fail to make offers houses simply don't sell. Sellers often resist cutting their prices in favor of just leaving the house on the market or taking it off the market. Traditionally the market adjustment to a collapse in real estate markets has come from the quantity side, not the price side—fewer houses are sold—while price reductions tend to come gradually. This doesn't mean that housing bubbles can't exist or that the bust is any less painful, only that it doesn't make as much noise.<< Just because you don't see large numbers of fire sales doesn't mean there won't be an extraordinary amount of damage to the economy -- because the economy is predicated now on this "housing-inflation-circle-jerk" -- think of all the professions that feed on it. Housing prices don't have to crater for the effect to happen either.