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

To: Jim McMannis who wrote (178215)	1/21/2009 1:55:51 PM
From: Perspective	Respond to of 306849

Great article. CRE is my #1 sector now. I love the Rosenberg comments: David Rosenberg, the brilliant economist from Merrill Lynch, describes what will happen next: "This is an epic event; we're talking about the end of a 20-year secular credit expansion that went absolutely parabolic from 2001-2007.Before the US economy can truly begin to expand again, the savings rate must rise to pre-bubble levels of 8 percent, US housing stocks must fall to below eight months' supply, and the household interest coverage ratio must fall from 14 percent to 10.5 percent. It's important to note what sort of surgery this is going to require. We will probably have to eliminate $2 trillion of household debt to get there. This will happen either through debt being written off, as major financial institutions continue to do, or for consumers themselves to shrink their own balance sheets.” `BC