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

To: benwood who wrote (88563)	11/6/2007 9:00:54 PM
From: John Vosilla	Read Replies (2) \| Respond to of 110194

'But to acknowledge anything 'deflationary' to him is akin to letting the tear-ists win' We can call it debt deflation, credit contraction or a housing crash for the ages but bottom line is many areas of this country have experienced severe priced drops in home prices for almost two years now never experienced to this extent before. I see REO's in parts of FL now priced 75% off the summer of 2005. Apparently just like telecom equipment in 2000-03 or commercial RE in 1990-94 that experienced it's misallocation of capital and subsequent collapse we survived those dreaded 'debt deflation' events too.. I always ask myself the question who is taking the huge losses on this housing meltdown? Always comes back to financial institutions with some speculators wiped out not too different from prior cycles. If you bought property at reasonable prices this doesn't impact you that much. If you bought near the top with zero down toxic loans your equity loss is zero... If you refied several times and took out all your equity over the years you partied like 1999 for too long..hardship for many yes but life goes on as part of the bigger picture where financial institutions are taking the biggest direct hit and we all pay on the back side one way or another..