Saturday, November 20, 2004


The proverbial pin is looming ever closer to the housing bubble.

[. . .]

Greenspan took investors by surprise, saying that foreign appetite for U.S. assets would likely decline and clearly stated that those who were unprepared for higher interest rates were bound to get burned and were "desirous of losing money." [my emphasis]

[. . .]

Look for another round of home refinancing to lock in a fixed rate now and then wait for the foreclosures on those who can only afford a variable rate or whose credit wasn't good enough to qualify. When that starts happening, the wheels will come off the economic buggy quick enough. Watch 'moral values' go out the window when the faith-based economy tanks.

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