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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (2460)	3/25/1998 5:27:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 5676

Pete: this is incredibly inflationary on real estate, and the fed can't ignore it much longer. The feds so far have ignored property appreciation by including mobile homes in their statistics. According to the manufactured housing association, one out of three homes is a manufactured home and the percentage has been increasing. Nothing wrong with a mobile home, but it really skews the statistics. The feds seem to compute housing costs per capita but haven't adjusted their statistics for the decline in average household size in the last several years. How convenient for them. Blowout housing numbers could put an end to the market by forcing the feds into an interest-rate hike.

To: MythMan who wrote (2460)	3/25/1998 6:31:00 PM
From: Tommaso	Respond to of 5676

I am not sure about that. The Federal reserve people are bankers, and while in wartime they do cooperate with the government in financing deficits, even to the point of deliberately causing inflation of the currency,they are independent enough not to feel obligated to help the excecutive and legistative branches to balance the budget by inflating stock prices. I see their lack of action more as caution and a lack of resolve. As Francis Bacon wrote four hundred years ago, "The errors of the aged consist mostly in this: that more might have been done, and sooner." It is also true that old men act more out of cunning than out of impulse and commitment. But in this case I think the cunning has to do with not being held responsible for a financial debacle than in inflating stock prices to finance the government.