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

To: Taikun who wrote (36209)	7/17/2005 7:20:38 AM
From: philv	Read Replies (1) \| Respond to of 110194

We have seen this before, in the early 80s when another housing bubble was finally busted through extremely high interest rates. At that time, the beast could not be contained even though rates were continuously rising. When psychology finally changed, the downturn was dramatic. But there was wage inflation at that time as well, so conditions today are different. Just like buying cars, people look not at the price but at the monthly burden, believing rightly or wrongly that they cannot control the price anyway. I believe we may have a ways to go as some people, waiting in the wings may panic as mortgage rates rise, believing that they have to buy now while they can still afford the payments. That is what happened before.