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

To: GST who wrote (62223)	5/30/2006 3:11:23 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

It is a shame how we got in the mess we have today. If greenspan did not lit fire under the housing market and let free market do its work, we might have suffered quite a recession in 01-02, but very likely would have been on the road to recovery by now, without inflated real estate prices, stable dollar, higher savings rate and sustainable levels of personal consumption and lower levels of debt.

To: GST who wrote (62223)	5/30/2006 3:16:48 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

Few talk about the deflationary pressures put on housing stock by the national production builders that are able to put up new home communities at an incredible discount (perhaps 50-60%)to what a small builder or homeowner can. Sort of like the Wal Mart effect or Southwest Airlines hedging oil prices. My guess is that goes away too with the housing bubble collapsing, inability to hedge forward a year or two in bulk at cheap 203-04 prices and shortages of materials due to Chindia.