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


To: John Vosilla who wrote (58710)4/20/2006 8:08:37 AM
From: Mike Johnston  Read Replies (1) | Respond to of 110194
 
That is a high probability outcome. I think housing will not drop except some speculative markets like CA, Florida, Vegas and Arizona.
And even those markets can get away with nominal drops of only 10% or less if the Fed is successful in its current inflationary campaign ( although these markets should experience real declines of 50% or more)
Interest rates are part of the equation, the other is money supply growth.

Interest rates are still negative and that will fuel further rise in inflation.