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

To: X Y Zebra who wrote (39556)	8/29/2005 8:00:50 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 306849

I disagree about real-estate. Real estate bulls want to have it both ways. They want to argue that low interest rates make real-estate more affordable but then at the same time inflation makes real-estate an effective hedge. Wow, the miracle asset. Your statement of real-estate being a hedge would ring truer if real-estate was at its true fundamental value rather than something inflated based on easy credit. Real-estate's value will be based on entirely the growth of income and employment and secondarily on interest rate/yield curve movements. If those two factors do not cooperate, the Fed can print as much as it wants, it will only make us all poorer.