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

To: patron_anejo_por_favor who wrote (260582)	7/13/2010 10:44:03 PM
From: tejek	Read Replies (1) \| Respond to of 306849

The Fed knows they're out of bullets, so it's happy talk from them now for an "extended period". I think there is more lending esp. on the corporate level. Any lending for residential or commercial structures depends on where you live. I can't imagine anything is getting built in AZ but where I live, construction has resumed albeit at a reduced level from 2008. Lastly, if we're headed into an expansion, why is the Baltic Dry Index completely tanking? I can think of lots of explanations for this, but none of them start off with "The economic production of the globe is expanding so fast that...." I've gone over this with MM. The Baltic deals with shippers who mostly deal in commodities. China has cut back on its imports.....they do that periodically.....and it doesn't mean their economy is crashing. Instead, China tends to stockpile commodities. People forget that while China has endorsed capitalism, its still an economy that is run by the central gov't. Its not as efficient as some people seem to think. That, coupled with the overcapity of Baltic shippers, has caused the index to pullback. However, the index's negativity doesn't jive with the comments coming from Maersk, one of the largest shippers in the world. In this post to MM, I cite two of their most recent articles: Message 26680854