Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jim McMannis who wrote (241710)	3/22/2010 11:25:26 AM
From: neolib	Read Replies (3) \| Respond to of 306849

Low rates did affect behavior, but it is still behavior which is the root cause, because we now have even lower FED rates but no bubble. In fact, as JV points out, in Florida you can buy lots of properties at below replacement costs. Yet FED rates are lower now than when those properties sold for 5x or more as much. Whats different? People confuse the fact that their behavior is blinkered by some enticement as meaning that the enticement must be to blame. Strangely, once spanked, they are smart enough to ignore the enticement the second time. Give them another decade or two, and they'll line out to be spanked again.