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

To: GraceZ who wrote (49467)	1/11/2006 4:13:47 PM
From: anachronist	Respond to of 110194

Real assets have done more than increase in price they've increased in quantity and quality. You keep stating that but it doesn't matter at all. The 1929 house that I live in has experienced the same inflation that these McMansions have. I also have to say that I disagree that the newer homes are of a higher quality. People, on average, own a slightly smaller percentage of a big better house. When home values inflate, the equity portion of the equation grows, not the liability portion. Grace, given the massive inflation in house prices do you not find it strange that the equity portion has fallen? When prices fall, the equity portion falls, but the debt remains.