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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 (64490)	6/24/2006 11:09:39 AM
From: gregor_us	Read Replies (2) \| Respond to of 110194

"The outlook for home prices is much worse than the consensus thinks," said Anirvan Banerji, director of research at the Economic Cycle Research Institute. Banerji said the ECRI's leading index of home prices is flashing warnings that real home prices (adjusted for the rise in consumer prices) could fall. "We'll have a harder landing than people expect," Banerji said. My comment: ECRI has a pretty good record and are not inclined to hyperbole. LP

To: UncleBigs who wrote (64490)	6/24/2006 12:21:39 PM
From: Ken Reidy	Read Replies (2) \| Respond to of 110194

I would agree with Noland that the Fed is way behind the curve when it comes to fighting inflation. They are in a very bad position, however, because further interest rate hikes beyond what are already anticipated will have a very negative impact on the economy. To save the economy, they need to cut rates....the sooner the better. This will result in a further reflation of asset and commodity prices and blow up the credit bubble larger than we've ever seen before....making the Fed's job of controlling inflation even more difficult than it was two months ago. We are walking a tightrope between inflation and deflation. My vote is the Fed and the Goldman Sachs Government don't have the guts to take us down the deflation path to purge this excess credit...hence they will inflate vigorously as soon as possible and walk us down the hyperinflation path until some future date where we get the deflationary collapse and massive debt defaults..... Other than that....everything should be fine.....lol....