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

To: SouthFloridaGuy who wrote (122058)	5/10/2008 3:04:27 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

Every textbook I've ever read or economics course says broad monetary expansion correlates with devaluation of your currency or inflation with a lag from 6-18 months.. It showed up dramatically in commodities and property starting in 2002-03 even as we pumped up MZM in 2000-02 after the dotbomb crash of 2000. Mike Johnson's hyperinflation might really happen if there is a global synchronized monetary expansion for an extended period of time coupled with ever increasing back end monetezation to keep long term rates low well into the inflationary cycle.. LIG weren't you expecting a housing crash here back in 2001 and were bullish on the stock market a year ago? So now Wall Street finally feels the pain we in the real world have seen for 18+ months and I'm suppossed to pay attention that finally Wall Street is freaking out that this is much deeper than just subprime as they were telling me a year ago? Now I'm suppossed to think the world is finally coming to an end with the housing market in parts of this country already down 60%, the stock market flat this entire decade but unemployment still near 5% and most still debating whether we are even in recession? I encourage you to take a trip to one of the ground zero bust markets and see the deflationary debt cleansing contraction with soup lines for yourself..

To: SouthFloridaGuy who wrote (122058)	5/10/2008 5:09:01 PM
From: GST	Read Replies (1) \| Respond to of 306849

Here is why you are wrong LIG: A debtor nation can experience high levels of inflation without any increase in money supply. How? By the impact of currency depreciation. Inflation is impacted by money supply -- and it is also impacted by currency depreciation. Those small minded fools who try to say that inflation is ONLY a function of money supply have looked like monkeys this past year. And as the dollar continues to slide they will look like even bigger monkeys next year. To say that our inflation is not driven by policy is wrong -- we have a fiscal and monetary policy intended to pretend that our economy can run forever on debt -- it can't. The end game is showing up now -- and it is called inflation.