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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (59164)	8/5/2006 3:15:25 PM
From: mishedlo	Read Replies (3) \| Respond to of 306849

Where I am less in agreement with others on this thread is in the notion that this mis-pricing of housing is going to crash the global economy -- I think that those looking at housing alone are pushing their point of view way beyond reality. mispricing is only a small portion of it. Mispricing will put a halt to cash out refis and consumption of houses. The big problem is the sheer numbers of people depenedent on real estate transactions to make a living. Housing activity is starting to fall off a cliff with that we will see rising bankruptcies, rising unemployment, and falling wages. That means there will be overcapacity in all sorts of areas. This can not but hurt the golbal economy. The US consumer was the consumer of last resort. Kiss that ide goodbye. Mish