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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Elroy Jetson who wrote (104663)8/29/2009 4:10:03 AM
From: Skeeter Bug2 Recommendations  Read Replies (1) | Respond to of 110194
 
>>If real estate value are declining on ultra-low mortgage rates, higher rates can spell a boom.<<

but they haven't declined unless you cherry pick the top. housing is still up *big* in many areas over the last 10 years.

if interest rates double as incomes are collapsing (withholding taxes down 11%!), less income to support low interest doesn't equate to higher housing prices.

i don't see the hyperinflation coming - that damages the oligarchs' financial position. deflationary depression is more like it.

yes, the fed is printing trillions - but it is going to the oligarchs. will they use it to spur inflation and erode their wealth? that would be dumb for their financial position - and that is their life!

will they hoard it and eventually use the fed and and their president to cause drive the economy in the gutter so their purchasing power goes up 10x (raise taxes and interest rates)?

that's what i think happens.