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


To: UncleBigs who wrote (56815)3/25/2006 1:59:35 PM
From: kris b  Read Replies (1) | Respond to of 110194
 
"They aren't making anymore land. Real estate as a superior investment is deeply ingrained into the masses."

I don't blame them. It worked since FED and other CB's put printing presses into overdrive in 1983. That is 23 years of flooding the world with liquidity.

"Many people view their home as their retirement fund especially in California"

This is not just California. It is a world wide(just like RE bubble is global) phenomenon. My cousins in Sweden, Austria, Poland subscribe to the same believe. All my friends in Vancouver are going to retire on RE in the near future.

"It's really all in the Fed's hands."

UB, who is controlling credit creation in this country, FED or the market? If it is FED we don't have to fear anything because FED can engineer any landing they want. Prosperity forever.



To: UncleBigs who wrote (56815)3/25/2006 2:06:04 PM
From: russwinter  Read Replies (2) | Respond to of 110194
 
It's really all in the Fed's hands>

Here is where I differ, sure they may trade off this this awhile, but I just don't believe in The Wizard of Oz. There are other important players and factors: FCBs, the huge Pig man carry trade apparatus. Add the fact that Ponzi schemes can just collapse of it's own weight and maladjusted economics, with or without policy changes.



To: UncleBigs who wrote (56815)3/25/2006 5:01:27 PM
From: mishedlo  Respond to of 110194
 
An excellent analysis except perhaps for buyers.
At close to 70% home ownership rate, how high can it get and who is left to buy?

Mish