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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (34574)	7/30/2005 12:41:26 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 116555

Tommaso; I think we are in agreement as to the problems which are ahead. Only in history do we differ. The example I gave for the early 80's was far from rare and very far from Boston. Virtually every large builder and developer in my town went bust during those years. They went broke because the houses stopped going up in price and rather instead fell - they couldn't sell for even what they had in them! I tried every imaginable incentive to sell a spec house I had built - all were unsuccessful. During the late 70's the spec fever was much like it is today and the lenders were throwing money at us. Wasn't that part of the cause for the savings and loan meltdown? ...... It absolutely has happened during the past 50 years and it will happen again. It was wrong of Bernanke to suggest it hasn't. The interesting difference is that in the very late 70's high interest rates put a cap on escalating home prices - we don't have that today. I believe this will make this time around much worse. Steve