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

To: JBTFD who wrote (94489)	2/21/2009 12:53:08 PM
From: John McCarthy	Read Replies (2) \| Respond to of 116555

Hi Mark If you look at a graph from 1980s to now and ignore that part of the picture you will get an inaccurate impression. Mark - you nailed me -g- thats exactly what I am doing. But I come out of it with a different idea (and I am dumb so lets get that out of the way real quick) If we didn't get all souped-up on the cocaine-like addition in -- adjustable rate mortgages -- super-sized mortgage levels -- interest only financing -- none-income verification = you get your mortgage -- home equity lines -- and so on the graph would have stayed flat-lined since 1980 I can't prove it - but I assume the graph will continue to fall to the 1980-2000 flat-line - which if true - holding all other variables constant - means home prices have to fall. You can raise the argument that if the government steps in and guarantees the mortgages (existing only) (say all of them) that the bleeding would stop. I'm just not sure of that - regards John