Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (72578)	12/19/2007 5:05:29 PM
From: Steve Lokness	Read Replies (1) \| Respond to of 116555

tooearly; the price rise has not slowed down in housing: the price of housing is now falling. You didn't read what I wrote did you? I agree many places housing is going down. Some places are stable and some are still going up. But the rise in housing was caused by too much money in the system and loaned out at rates that were held abnormally low by Greenspan (Send Ron Paul some money!!!) These things led to a case of extreme over supply that now we are dealing with. If you have too many houses - it is expected that prices will come down. But that doesn't mean for a second that food prices and all the things you need on a daily basis are about to plummet. If these other things come down depend on the definition that Mish reminds us of all the time and that is the supply of money. It is my belief that the supply of money has so increased over the past several years - money that went into building houses for an instance - has set the stage for higher and higher inflation. If all the things you need on a daily basis are on the rise - to most people that is inflation. It is the ugly side of inflation that chips away at your buying power as prices go up and up and up. We have too many houses - yes I agree. We don't have too much diesel and we don't have too much corn! steve