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


To: Live2Sail who wrote (82278)7/28/2007 1:16:49 AM
From: MulhollandDriveRespond to of 306849
 
Event risk means liquidity is drying up, so the fed has to hydrate

true, but 'hydrating' by the fed won't change the bond market demanding real yields based on real risk

the point i was making about housing was that a rate cut, say what, a quarter? will have minimal effect on buyers squeezed out due to tougher lending standards....additionally, a rate CUT will be AFTER a recession becomes evident....

recessions are not bullish for housing

the fact is that the housing bubble was created by basically 'free money' reaching the level of un-affordability, rate cut or no rate cut, supply has far out-reached demand, the demand during the bubble phase was driven by cheap money and the perception of ever increasing prices...

that scenario is done