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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (55419)	11/2/2004 4:54:25 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 74559

What do you mean, where are the banks getting the money? You know perfectly well it comes from depositors and from the Fed. It's money because they say it is. The banks make the loans and then sell them off to someone. If there are no other someones, the Fed is authorized to buy these mortgage backed bonds. I don't know that they are, but they have assured us they can. Certainly REITs are buying huge amounts of non-performing crap. The REIT that owns the vast empty apartment development I referred to previously is AIMCO. There are empty retail spaces all over town. There is a proposal to turn half of the "Beverly Connection" shopping center into condos and a nursing home. New retail space is being added everywhere. Temporary campaign offices, tiny churches, seasonal vendors like a Halloween decoration store can all obtain premium retail space for next to nothing. Anyone who thinks the Fed can push more construction or mortgage debt into the system to support spending in the economy has no conception of the magnitude of disaster which has already been created. .