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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 (31551)	5/19/2005 11:58:55 AM
From: Valuepro	Respond to of 306849

John, "I only wonder if he has finally figured out how extensive the speculation and overvaluation in many housing markets is yet." He knows. The Fed is a private business. It's job is to increase the wealth of the major banks. It has no other purpose. And the intent of the banking industry is to spread debt as far and wide as possible, to every person, business, and form of government, and to never allow debt to paid off. To the extent they appear to take a hit from time to time, they emerge larger than before.

To: John Vosilla who wrote (31551)	5/19/2005 1:38:03 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

I'm sure he doesn't want that happening again, especially on his watch because this time it would be much worse. You can't lose that which you haven't really gained. Rising home prices are false wealth, not real wealth. Take that away and you've lost nothing of value. All the RE boom has done is direct savings that might have been put to productive use into consumption. Stop that and savings will have to flow into productive uses to make a return. The short lived effect of the S&L crisis pretty much demonstrated that. While it may have had a devastating effect on certain individuals and communities it had no lasting effect on the US economy. We had one of the largest surges in productivity in our history after it unwound. RE is a diversion of resources that has little or no beneficial effect on the economy. Good riddance to it if it busts.