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

To: Umunhum who wrote (37925)	8/5/2005 5:39:59 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 110194

RE:"The cure for excessive speculation is higher interest rates not lower ones" That's not the only cure. Try leveling the tax incentive playing field. 50% right off the top there. If you raise rates to the point of slowing RE speculation the rest of the economy is in recession big time because most other investments/endeavors don't have the same incentives.

To: Umunhum who wrote (37925)	8/5/2005 7:06:18 PM
From: GST	Respond to of 110194

<Housing prices are probably going to go down but everything else is going to be going up.> This is my sense as well -- real estate will go down, interest rates will go up and import prices will go up, led by oil. I call it the end of cheap credit (provided by foreigners), the end of cheap oil (provided by foreigners) and the end of cheap labor (provided by foreigners). We have leveraged and spent ourselves into a deep hole, and we are going to be treated like "white trash" at a snobby bank looking for a third mortgage on a run-down trailer. The buyers and sellers market of greatest importance will be the market for our financial paper. When the market for our paper becomes a serious "buyers market", the results will be hard to swallow for the US.