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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Mike Johnston who wrote (30871)5/7/2005 12:39:48 AM
From: John VosillaRespond to of 306849
 
Compare this RE bubble to the late 1980's and actually it is not that much worse as long as interest don't skyrocket. Don't forget we also had a major bubble in Texas and the oil patch as well as huge overbuilding in commercial RE back then. Now if credit tightens like it did back then and fixed rate mortgages get to 8%+ it will be a disaster.



To: Mike Johnston who wrote (30871)5/7/2005 11:13:15 AM
From: Jim McMannisRespond to of 306849
 
RE:"I think that we have moved into a panic driven, parabolic blowoff stage, the problem is that these things always go much higher than anybody can imagine. Nasdaq at 3500 was extremely overpriced but it still went up another 50%."

Just repeal the 1996/1997 tax act and it's over. Without that it never would have happened.



To: Mike Johnston who wrote (30871)5/7/2005 2:20:01 PM
From: GraceZRespond to of 306849
 
For now, they print money in unbelievable amounts( 73 billion in just 2 weeks )



Not the Fed. The Fed has only just recently made any permanent additions to the money supply. I count 3.15 billion in all of 2005, all done in April and May. They usually do a large pass in April to counter act the effect of large amounts of money being drawn down on commercial banks as people pay their taxes due. The Fed has been stingier than they've been in 5 years with the coupon passes. They are tightening.

Look for yourself:

ftp://ftp.ny.frb.org/perm_omo/



To: Mike Johnston who wrote (30871)5/7/2005 3:13:53 PM
From: SouthFloridaGuyRespond to of 306849
 
It's not the Fed who is doing it - Fed has been tightening rather aggressively. Not excusing the past, but clarifying the present...