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


To: Crimson Ghost who wrote (37066)7/26/2005 11:26:02 PM
From: Mike Johnston  Respond to of 110194
 
AEI economist argues that Fed wants to halt housing bubble without "popping " it.

It is laughable.
If they had wanted to stop it, they should have done it 3 years ago. Now it is too late. Of course, why would they want to stop it, they have created it.

You "stop" the bubble and you eliminate 50% of the artificial demand and remove any incentive to own anything.
Rising prices are the only incentive to own real estate now, there is no other fundamental reason.
Once prices stop rising, 20-30 million units will come on the market.



To: Crimson Ghost who wrote (37066)7/27/2005 1:05:13 AM
From: mishedlo  Respond to of 110194
 
AEI economist argues that Fed wants to halt housing bubble without "popping " it.

Chance of success about one in a hundred I think


The first is obvious
The second is reasonable. The % is very small but clearly non-zero.

Mish