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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 (91837)	3/4/2008 12:15:58 PM
From: Tommaso	Read Replies (2) \| Respond to of 110194

There was a time--about three generations ago--when indoor plumbing, one full bathroom, and one lavatory represented luxury in the United States for a family of four or five. Most Chinese probably aspire helplessly to such comfort right now. I think these recently built $450,000 houses with more rooms and baths than can even be occupied at once by an average family, and more utility expenses, upkeep, and taxes than many can afford, will just have to languish unsold until the prices drop--right along with the dropping dollar.

To: John Vosilla who wrote (91837)	3/4/2008 12:28:11 PM
From: Riskmgmt	Read Replies (1) \| Respond to of 110194

And you agree with the deflationists that home prices continue going down long term in this scenario even with our twin defecits, MZ 15%+ growth,Chindia ect? Sorry makes no sense to me long term unless real estate has taken on the characteristics of a paper asset. It was artificially inflated during the bubble from excess credit and acted like a paper asset to some degree but that is now ending.. Seems like property now in much of the US is way undervalued in relative terms compared to much of Europe, Argentina, Brazil ect.. Something sure has to give and these are confusing times.. John, been doing a lot of traveling lately and comparing prices in other parts of the world i came to the same conclusion. Considered following Jim Rogers in a move to Singapore but that place is in a RE bubble, up 50% in 2 years, asking $1,100-$1,500 per square foot for anything half decent. Hong Kong is even higher. Europe? Forget it, unless you want to try something in an eastern European country where you will have to learn a language you will never use outside of it. I have friends in Europe and HK asking me about buying in Miami beach.

To: John Vosilla who wrote (91837)	3/4/2008 12:33:06 PM
From: GST	Read Replies (1) \| Respond to of 110194

My position: Your balance sheet keeps kicked in the groin as your assets evaporate and your income lags well behind screaming inflation for everything you consume. The land under your house wil not appreciate if the only people who would be buyers of your house are people just like you -- broke and wondering how to pay for their next tank of gas and their next meal. That is NOT deflation - that is inflation in an era where your house is a useless hedge against inflation.