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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 (62331)	5/31/2006 12:38:58 PM
From: GST	Read Replies (1) \| Respond to of 110194

7% will flush the RE toilet and put everybody on a daily spending diet. Housing prices will slide, not crash, and the bubble will most likely deflate over a series of steps in 3 years and then stagnate for a decade. By deflate I mean fall in the range of 20 to 30% for the lower end of the market and 40 to 70% at the "stupid people paid way to much for this piece of shit" end of the market. Life will go on -- just with more people feeling poor because we are poor, or at least way less rich than we have been able to pretend to be for so many years. All of this assumes 'tame' inlfation in the range of 5 to 10% per year, representing in large part the annual rate at which the dollar is falling. Look for the dollar to lose half its value in the 5 to 7 year range.