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

To: John Vosilla who wrote (47190)	12/13/2005 1:40:00 PM
From: GraceZ	Read Replies (1) \| Respond to of 110194

only a localized housing boom while the rest of the country and economy suffers Ahem, this housing boom is "localized" to where the majority of the housing in the US is located! Even if you were sensible and owned a house in a non-boom area like Houston and your house didn't rise in price at all. If you had any mortgage at all the lowering of interest rates essentially placed a check in your hands....at the expense of the person who owned that existing note. Those people basically received a far greater benefit from the Fed's largess than those who lived in bubble areas who took their windfall and ran up the price of housing. They bought a more expensive house that wasn't a whole lot better than the one they were in and ran up their total debt instead of using the debt forgiveness handed out by the Fed to lower their overall debt. I say the guy in Texas with the house that went nowhere and now has lower debt and lower debt service is better off than someone in a bubble area who rolled from a 200k house into a 600k house (that isn't much better than the 200k house was) doubling their debt. The whole basis of economics is that you can not get something for nothing. Inflation is just an attempt to do just that and it never works. Oh it may appear to benefit this group over that group for a while but in the end it extracts the true cost from everyone.