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

To: oldirtybastard who wrote (91237)	10/3/2007 12:57:56 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

Minsky implied that excess liquidity will flow to inflating assets. That's pretty much what we're seeing, with gold and stocks flying and homies staying moribund. That's why it's beyond stupid to address a housing bubble (or a nazcrack bubble) collapse with drastic reductions in short term rates. Got gold and chinese solar stocks?<G>

To: oldirtybastard who wrote (91237)	10/3/2007 1:11:07 PM
From: John Vosilla	Read Replies (2) \| Respond to of 306849

'We were a manufacturing -farming economy then and the devaluation was intended to set a floor under those prices. Now we are a financial instrument - service economy where the floor on prices can be undercut to near 0 by idividuals since there is no real product except brain/computing time while houses are a naturally depreciating asset that probably won't behave as intended by the currency printers.' Hard to say as just look at what is happening in NYC and Chicago these days. The old manufacturing based economy from 50+ years ago has been long gone for a while now. Yet the skylines being transformed once again in this new economy. Are our gateway cities in the US any different from a London or Hong Kong today? Seems like 1928-29 at least on that front is soon to be upon us. I wouldn't underestimate medical and technological advances continuing along with a continued spread of US consumerism and middle class growth in the third world continuing for a very long time.. Owning assets in our heartland not far from a major airport and tied to a weak dollar make a lot of sense these days.. Houses over the long haul increase due to land constraints, rising costs of putting in infrastructure and impact fees plus much higher costs of construction more than offsetting the depreciating value of aging improvements.. Of course if you live in an area with declining population and declining local GDP it is irrelevant..