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Actually, everyone in finance and investment is dreading the fallout of
the real estate crash. Alot of the economic growth in the last few
years has been propagated by the real estate bubble. A hell of a lot
of jobs are now tied up in various aspects of real estate buying,
selling, financing, construction and brokering. Also, the paper
wealth of increased house prices allowed many people to cash-out their
equity to buy toys. This has propped up domestic consumer demand. Now
that the bubble is popping, it will likely cause a severe recession as
those jobs disappear and people can no longer dig themselves in deeper
debt to by plasma TVs.
So, no, I doubt that bloomberg is relishing the enevitable bear market
which is already underway.
It all started years ago when Greenspan was terrified of the fallout
from the dotcom meltdown. He managed to delay (not stop) the recession
by artificially lowering interest rates to near zero. The cheap money
created asset bubbles, especially in real estate. But now they have no
more room to manouver, Bernanke is faced with inflation so he can't
pull Greenspan's trick by lower interest rates to near-zero again.
Interestingly, we are now faced with the recession that we should have
had years ago.
John
Richard Ragon wrote:
> hefferMiller@hotmail.com wrote:
> > Dream on, and then read this:
> >
> > http://www.bloomberg.com/apps/news?pid=20601103&sid=amJynxoSEAco&refer=us
> >
> > John
>
> Wow.. A web site that has a clear interest in people investing in the
> stock market and NOT in real estate?? I am shocked! I cannot imagine why
> this web site for the stock market is claiming that the real estate
> market is going to crash??
>
> -Richard
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Re: Why no posts about the "elephant" in the room?
