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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 (69835)9/15/2006 1:31:17 PM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
I expect home prices to fall to 2000 levels if not lower.
In some areas that may not mean much lower in other areas like California that will be devastating.

Not sure we get to 20% unemployment. Perhaps something like 10-12%

2% long term treasuries?
Unclear.
3.5% probably.

How many years have I been calling this?
2-3
How many years has prechter been calling it 20+

Did I see credit standards drooping to the floor prolonging the housing bubble by at least 1.5 years if not more? No. I am not aware of anyone who expected that.
Given that k-cycles might last 16-22 years or longer forgive me for being off by a few years.

Do I expect to be a star out of this.
No, even if I am right.

Rents going up dramatically?
I disagree.
Steady rents. Possibly even lower.
There are many condos that will have to be rented out, for whatever they can get. Perhaps a lot lower. We also have a huge oversupply of houses, perhaps those get rented out too.

Mish



To: John Vosilla who wrote (69835)9/15/2006 1:57:50 PM
From: booyaka  Read Replies (1) | Respond to of 110194
 
I notice much smaller portions in restaurants where the price hasn't gone up. Also ever notice how less full the bag of chips are nowdays when you get that meal deal at Subway or Quiznos?

That's not de facto inflation. They're anti-obesity measures. Bless those restaurants from saving us from ourselves ;)



To: John Vosilla who wrote (69835)9/15/2006 5:05:37 PM
From: Les H  Respond to of 110194
 
"Many folks get foreclosed on but rents will be rising dramatically due to rising operating costs that still had never caught up to home prices and tight supply due to the end of the construction boom and an even bigger pool of renters. Rising rates create even more cost pressures that must be passed through."

Many recent buyers and refinancers will face a 2- or 3-year delayed inflation effect because of the application of rate reset to teaser rates.