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

To: Mike Johnston who wrote (56546)	3/23/2006 12:45:06 AM
From: John Vosilla	Respond to of 110194

Exactly. How can your scenario (which I also agree with) not result in some major nominal drop in home prices in very overvalued housing markets? I guess where I might differ is even if CA prices drop an average 30-40% on a nominal basis over say five years and 60-80% on a real basis in a high inflation environment that doesn't necessarily mean the real economy will tank and currency collapse. As long as the back up in rates is slow and steady it might not be that bad for the real economy..