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

To: russwinter who wrote (49066)	1/8/2006 12:35:18 PM
From: RWS	Respond to of 110194

Russ, I follow your posts closely and really appreciate reading your discussion on the Xanga site. Thanks and regards, RWS

To: russwinter who wrote (49066)	1/9/2006 1:25:38 AM
From: John Vosilla	Respond to of 110194

"From 1955 to 1995, home prices rose with inflation, or basically 0% in real terms. Since 1996, home values have risen 45% in real terms. End result: a $5 trillion increase in housing-bubble wealth." Then something has to give as reported inflation is probably greatly understated in which case mortgage rates should have been higher during the period. The magnification of even a 1% per year understatement of inflation on the bond market is huge on monthly payments (approximately 11% per yr lower on 30 yr) and thus home prices..