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

To: Skywatcher who wrote (33333)	6/13/2005 12:34:23 PM
From: John Vosilla	Read Replies (2) \| Respond to of 306849

The aftermaths of both were caused by the preceding asset bubbles, precipitated by reckless monetary policies. It is asset bubbles that create the damage, not the small amount of tightening that comes at the end. In fact, I would argue that the tightening didn't end those bubbles. Exhaustion ended them, and the tightening was coincident with the exhaustion phase. True but in the end an asset is ultimately valued on the present value of the future cash flows it will generate. Sometimes the perception changes, the assumptions of the so called experts change and the ultimate stupidity of the masses tend to sway things way too far on either side. Bubbles for the ages: US stock market 1929 = anything Japan 1989 = NASDAQ 2000 = coastal housing USA 2005 Buying opportunities for the ages: US stock market 1946 & 1982 = US commercial RE 1995 = NASDAQ early 2003 = flyover country RE today = coastal housing USA 2011