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


To: anachronist who wrote (31573)5/19/2005 1:59:44 PM
From: ValueproRead Replies (1) | Respond to of 306849
 
"The housing economy is too big too fail at this point."

Huh? "Too big to fail" is a term reserved for contemplated bail outs of large, individual corporations, and usually at taxpayer expense. With housing/real estate, you're talking about a whole sector of the economy. How can such a bail out be possible, and where will it be directed? At lenders? At underwater borrowers? At REIT's? At Fannie & Freddie? At the construction industry?

"Too big to be bailed out" is more like it.



To: anachronist who wrote (31573)5/19/2005 10:36:13 PM
From: Jim McMannisRead Replies (1) | Respond to of 306849
 
RE:"You are making the supposition that the government has the ability to determine whether or not the housing market fails. It remains to be seen if they have that level of control. I think they do not, as our government currently exists"

They can take the tax breaks away. End of the game. EOM.