twaddle
Thinks s/he gets paid by the post
- Joined
- Jun 16, 2006
- Messages
- 1,703
Do you want me to post a graph of wage inflation vs house prices? Please tell me you don't.
The reasons for the bubble are well publicized. The subsequent rise in inventory and drop in sales is well publicized. And you know better than most what happens when supply goes up and demand goes down. We are nowhere near the clearing prices for this market. And we won't be until the low-end of the market is affordable to entry-level buyers who can then move up in a few years.
In the meantime, the whales will die of starvation waiting for those move-up plankton.
PIMCO Bonds - Global Central Bank Focus- March 2007 "The Plankton Theory Meets Minsky"
The reasons for the bubble are well publicized. The subsequent rise in inventory and drop in sales is well publicized. And you know better than most what happens when supply goes up and demand goes down. We are nowhere near the clearing prices for this market. And we won't be until the low-end of the market is affordable to entry-level buyers who can then move up in a few years.
In the meantime, the whales will die of starvation waiting for those move-up plankton.
PIMCO Bonds - Global Central Bank Focus- March 2007 "The Plankton Theory Meets Minsky"