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To: LindyBill who wrote (126826)7/22/2005 11:13:12 AM
From: carranza2  Read Replies (1) | Respond to of 793688
 
I see no reason to expect a sharp collapse

During the last time a RE bubble took hold, particularly in California, I/O mortggages did not exist and the percentage of ARMs was minuscule. Lending standards were also a lot stricter.

Up to 40% and perhaps more of recent mortgages are I/Os and ARMs. Lending standards are also currently a joke. When interest rates go up, as they absolutely positively will, the RE crash will be hard, much harder than before.

Shorting homebuilders is going to be the next stock bubble. vbg.