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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 (64980)	6/30/2006 12:55:10 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

when real estate prices start to seriously decline, the inventory numbers will explode higher. it seems to be the opposite: prices have not started to "seriously decline" (at least nationally), but inventories have already exploded. this looks like it will be the first nationwide decline in nominal housing prices. all previous corrections over multiple years have been achieved mainly by inflation (lowering real prices), while nominal prices have flatlined or risen slightly (speaking nationally; obviously there have been steep nominal slides regionally, but they haven't slide nationally). this will be the first nationwide nominal price slide since the Depression at least. that is really bad news since debt doesn't decline nominally.