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

To: Jim P. who wrote (69663)	9/11/2006 9:41:35 PM
From: Startwitharoux	Respond to of 110194

The income tax law changes are also significant fwiw.

To: Jim P. who wrote (69663)	9/11/2006 11:11:56 PM
From: John Vosilla	Respond to of 110194

I agree. Seems bubble real estate along the coasts this time has already moved up in anticipation of stagflationary times perhaps? If true the midwest and oil patch still dirt cheap should appreciate nicely the next cycle unless the huge sucking sound of a global margin call on bubble RE trumps all?

To: Jim P. who wrote (69663)	9/13/2006 2:56:30 PM
From: GraceZ	Read Replies (3) \| Respond to of 110194

you could buy a house and borrow in the 6's (if I remember correctly) Mortgage rates in the 70s were never as low as the sixes, you'd have to go back to the 50s and early 60s for anything in the sixes. Of course plenty of people still had mortgages in the 5-6% range, as well as the GI Bill loans from the 50s that were as low as 3%. Here's the historical record for 30 year conventional rates: economagic.com By 1981 you were bragging about a 12% rate. I remember very well when rates finally dropped below 10% back in 1986 because that's when I started looking for my first house. As for wages keeping up with inflation in the 70s, that's a good one. Reading newspaper headlines from the era would dispel that notion, almost no one felt that their wages were keeping up with inflation especially after Nixon imposed wage and price controls. By the late 1970s you couldn't buy a job. What is interesting is that he imposed the price controls when inflation was at 5%, a level that later was considered to be a great accomplishment after the double digit inflation rates early in the 1980s.