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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (43659)	12/30/2005 3:35:25 PM
From: loantech	Read Replies (1) \| Respond to of 116555

You need to write for NY times then you could dream up what you want. <g> Low rates have helped a lot but people's wages have not kept up.

To: mishedlo who wrote (43659)	12/30/2005 4:10:38 PM
From: Perspective	Respond to of 116555

<Just as the downward spiral begins we see silly articles telling us how affordable thing are. I find it all rather amazing.> and I find it comforting that there are still bubble apologists... BC

To: mishedlo who wrote (43659)	12/30/2005 4:14:48 PM
From: Perspective	Read Replies (3) \| Respond to of 116555

I wondered if you would pick that article apart. Nice work. The one thing the article did remind me of is that it's never safe to assume the bubble can't get bigger. However, price at the margin is determined by supply and demand, of homes for sale, rental alternatives, and financing. Once liquidity is as free as possible, any restriction will result in a correction in price, and we are well into the removal of the proverbial punch bowl. To the extent that ARMs and creative loans fueled the final increases in price, those should now be reversing. PS This is what really matters: <Household debt payments as a percentage of income and total consumer debt each reached new extremes.> BC