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


To: John Vosilla who wrote (31466)5/18/2005 12:57:37 PM
From: Jim McMannisRead Replies (1) | Respond to of 306849
 
RE:"One year CD's are now paying 4%"

Where?



To: John Vosilla who wrote (31466)5/18/2005 3:08:21 PM
From: Mike JohnstonRead Replies (1) | Respond to of 306849
 
This bubble will expand as long as mortgage rates are below the level of inflation.

CPI is a joke, between hedonic adjustments and substitutions it is designed to never show the true level of inflation.

If housing inflation is 20%, consumer inflation is 8%, maybe those who borrow interest only at 5% are smart after all.

Expecting the bubble to burst is reasonable, however reason only works in the free market economy.