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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (34679)	6/22/2005 9:34:50 AM
From: Knighty Tin	Read Replies (3) \| Respond to of 110194

He ignores the fact that most banks can make an unsound loan and ship it off to Freddie, Fannie, the FHA, or a whole loan mutual fund or investment offering.

To: carranza2 who wrote (34679)	6/22/2005 11:28:36 AM
From: Les H	Read Replies (2) \| Respond to of 110194

" But the national bubble seems to have neglected places like Jackson, TN, where house prices have failed to keep up with inflation. According to the standard theory of a bubble, speculators bid up the price only because they expect the next person to pay an even higher price. If those expectations have no foundation in reality, there's no reason why a bubble couldn't appear any old where. Yet, as the map of the OFHEO data below shows, house prices have gone up four times as fast over the last five years in places like California and Nevada compared to Ohio and Tennessee." If you used his logic, there was no stock market bubble in 2000 since the Dow fell 20% at the same time the Nasdaq was approaching 5500.