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

To: Crimson Ghost who wrote (35408)	7/15/2005 9:37:49 PM
From: Mike Johnston	Respond to of 306849

One significant difference is that stock market speculation does not have negative consequences for the economy as a whole. Speculators enter and then many of them wash out in stock or commodity markets all the time. Real estate flippers however, distort the market and create economic as well as social imbalances. Everybody is a part of the housing market whether they want it or not. Wild swings in housing prices are not desirable either up or down. You cannot blame the speculators, with cheap credit below the rate of inflation, it is only natural that people will speculate with somebody else's money and minimal risk. The Fed and Feds are solely to blame for this situation which in the long run will create damage that could take a couple of generations to unwind. Speculation belongs on Wall street, not on Main street. The Feds have not only allowed, but fueled speculation on Main street. The damage has already started even on the way up, and consequences will be beyond worst expectations of majority of people once the market turns south, even if the Fed decides to intervene, which will make things even worse.