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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 (31549)5/19/2005 11:43:24 AM
From: ValueproRead Replies (1) | Respond to of 306849
 
John, "Hasn't this already going on for several years and yet here we sit at 4% on the 10 year and more capital than ever flowing into real estate from overseas."

Sure, no crisis at present, but looking forward would you rather invest in a growing economy like China, or a paper one like the U.S., all things being equal. To maintain the flow of funds then, yields have to rise. Already treasuries are losing their appeal overseas, and that's a critical source of operating funds for the government. Rates must be forced up, or we will be in a worse fix than we are going to be anyway.