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

To: shades who wrote (25981)	3/19/2005 1:52:11 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

I hope you're not serious - Cartels never work. "If you sell your homes / stocks / bonds, you're just letting the terrorists win" and nonsense like that just makes me laugh. Usually the very market makers who urge everyone not to sell, are the ones dumping their inventory of stocks / real estate / bonds before price declines too far. In 1890 California in particular, large land owners had undertaken debt funded improvements to their land holdings to prepare it for sale. Simply selling fewer lots to would-be home owners was enough to bring them into default on the loans they had taken on - even without lower prices. Just like home builders today, once home sales decline sharply, most of them will be in bankruptcy liquidating homes and land at distress prices. .

To: shades who wrote (25981)	3/19/2005 6:59:58 AM
From: dpl	Read Replies (1) \| Respond to of 116555

This is violating one of the "laws" of bubbles.They pop with a bang.The air cannot be let out slowly. You also cannot fight a burst bubble by simply lowering interest rates.The only way is to "create" another bubble that is bigger than the burst one.That is what Greenie did after the Tech bubble burst.If RE had also been in a bubble at the same time and burst with or right after tech then we would be having a modern version of the 1930's right now and the FF would be a lot lower than 1%