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To: MythMan who wrote (388471)	6/10/2009 7:19:33 PM
From: Terry Maloney	Read Replies (1) \| Respond to of 436258

Things keep getting crazier out there every day ... <g> cnn.com

To: MythMan who wrote (388471)	6/10/2009 7:36:11 PM
From: Real Man	Respond to of 436258

Wow

To: MythMan who wrote (388471)	6/10/2009 9:05:00 PM
From: gregor_us	7 Recommendations Read Replies (1) \| Respond to of 436258

That is what an inflationary depression looks like. It's here. It has come. I have been studying the price structure of the housing bust in the really dire places like Cleveland and Detroit, and now places like Vallejo, Stockton, and Central Valley CA. There is a pattern that's appearing, and while I need to do more work on it, my working title is the Double Crash. The first part of the crash comes off the top. That's usually marked between Q4 2005 and Q2 2006. The top was of course so spectacular, that it makes the first crash pretty easy to accomplish. Anyway, the first crash is more macro-economic, a simple 30-50% "trim" off the top. The second crash comes when the condition of zero equity in both individual houses and surrounding houses reaches critical mass, and, there is simply not enough liquidity as people walk away and get foreclosed. In the second crash, many houses wind up trading for as little as 20% off the peak, or in places like Detroit, something that approximates zero. Zero is an interesting concept. We have been taught that "things don't go to zero." Well, the trip from 150K to 2K is close enough. I'm starting to wonder if the second crash is going to break down the door into places like the Bay Area, where the second crash has come very close via the north Central Valley. Meanwhile, we've got people like Jim Grant coming on TV who is saying the exact same armageddon stuff that you see on the internet, but, which your average joe can't allow into his mind until he sees someone "respectable" like Grant get behind the idea. Housing will be no harbor in this inflationary depression. The rising rates will now ensure the second crash. Housing is like a 1972 Ford LTD wagon with wood panels as the price of gasoline (the interest rate) starts to skyrocket Yes, as someone pointed out today, TobagoJack's simple statement from years ago said it best: "deflation in everything you own, inflation in everything you need." G