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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (37519)	8/10/2005 10:59:37 PM
From: KM	Respond to of 306849

It sure worked that way in the stock market. I see no reason to believe this will be any different. Except there isn't a bid to hit.

To: mishedlo who wrote (37519)	8/11/2005 2:20:34 AM
From: Tradelite	Read Replies (1) \| Respond to of 306849

You said I didn't answer your question. Yet you are creating a completely imaginary scenario without any documentation that it could even occur and saying (apparently unequivocably) that "It is about to happen". Huh? <When that 1.4 million house shrinks back to 700,000 the person will owe $1M on a house worth 700,000. That is about to happen. >> Have you met any of these people who will be caught up in your imaginary scenario? Have you asked them how long they intend to live in their homes and how much equity they have in them and even WHY they are living in them? If someone had said that to me when I bought my house, they would have needed a real good crystal ball to predict the years in which the value of my home went up and went down, and they would have needed to know whether I cared or whether this would change my life in some way. They most likely would have been wrong on all points. By the way, Mish, why are you living wherever it is that you are living, and will you change your plans if the value of your home crashes anytime soon? Can you even name a credible reason that the value of your home might crash soon? If so, why aren't you selling now, if you think the value of your home will decline? Is a major factory closing in your area which will create high unemployment? Are your neighbors unhappy for some reason and moving out? I dunno about you, but most people live everywhere for a reason, and one big reason is NOT what the value of their home is from one year to the next.

To: mishedlo who wrote (37519)	8/11/2005 9:47:20 AM
From: shades	Read Replies (1) \| Respond to of 306849

Mish become your own critic, say you are a republican wanting to keep your power, what could you possibly do for short term political gain to make sure the sheeple don't feel any short term pain? You could inflate your sheeple out of thier debt no? This was the solution of the past. Their house price will never go down - but as greenspan said - some time in the future the global purchasing power of the dollar would not be much. The republicans are going to do everything they can to make sure thier kudlow and bush supply side economics and tax cuts make people feel better no? So what could they do to make sure that 1.4 million dollar house never drops to 700K in price? For if that happened, I fear many people would be very mad and make sure they never vote for the guys that got them in that mess ever again. As a republican seeking re-election - what do you care of international peace, what do you care of chinese dollar horders, what do you care even of future voters, your only goal is to get voted back into office the next term - nothing else matters. If you let everything come apart and houses go from 1.4 to 700K in a short time, you would lose all your political power probably for the rest of your lifetime. It would be like the folks in ga who voted democrat election after election just out of pure spite for actions of the other political party in the past. Make me understand why you think career politicians will allow this to happen? If you have to blow up the world, destroy the economic future of the country, collapse the global purchasing power of the dollar, but you get voted in next session and keep your job - which goal do you think they will work for? Your scenario requires total political destruction of the elephants - they won't be able to pin this one on the donkeys. What am I missing?