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

To: SouthFloridaGuy who wrote (38022)	8/17/2005 2:28:23 PM
From: dpl	Read Replies (1) \| Respond to of 306849

"The only logical conclusion is that the Fed will continue to raise interest rates until something breaks. Unlike the stock market in which it was duly recognized that we were in a bear market by 2001, after a 50% drop in Nasdaq and 20%+ decline in the S&P500, this will be much harder due once again to the illiquidity and lack of information concerning the housing market. The Fed will not "react" 6 months after the bust. By the time the Fed recognizes the housing pain and cuts rates, it will be 2 years into a housing bust, IMO, and by that point it will probably be too late and it will be questionable whether the Fed has the ammunition or motivation to save housing should it not manifest itself in deflation and/or unemployment - particularly in my line of work. " This is a very important point.Any "extra" things the Fed may do, like drop money from the sky ,would happen several years too late.