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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 (51791)	1/27/2006 5:06:50 PM
From: Mike Johnston	Read Replies (3) \| Respond to of 110194

There are a lot of people like you, that believe times we live in are normal. Nothing could be further from the truth. There is nothing normal about housing prices tripling while average income goes up 15-20%. And while there are some folks who tripled their income, it is because of the bubble, it is not sustainable. And big chunk of population is struggling, increasing their debt load instead of paying it off. 43% first time homebuyers could not afford to put a dime in ! Why would you opt for a higher rate if you had something to put down ? Retail sales increased 7.3 % last year, fantastic number on the surface, but how much of that growth was due to inflation. I would say a lot since for example gasoline doubled. Incidentally M3 grew about 7-8% last year. Do you really believe that people can get rich by selling houses between each other ?