Construction spending stays almost flat but demand for new homes increasing rapidly
Peter Oberois
Apr. 29, 2007

The Federal Reserve is convinced that the real estate markets will rebound all across the country. The construction spending stays almost flat but demand for new homes increasing rapidly. Builders are now little more optimistic. A cyclical bill market in real estate in the middle of a secular bear market will take prices and demands for new homes way up. The older homes will falter in price.

The stock market and real-estate markets will fall with a phase shift. When real estate falls, stock markets will rise and vice versa. On the whole over a long period of time, both stock market and real estate market will trace back the gains (inflation adjusted) made since 1960.

For the next eighteen or more months stocks will have some real hard time while real estate will bounce back somewhat.

Construction spending stays almost flat but demand for new homes increasing rapidly
Peter Oberois
The Federal Reserve is convinced that the real estate markets will rebound all across the country. The construction spending stays almost flat but demand for new homes increasing rapidly.
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Mortgage brokers who lied to the public while selling mortgages are looking for safe heavens abroad
Fred Day
Many mortgage brokers who sold mortgages by lying to public are scared now. People can easily take revenge on them. State and Federal regulatory authorities can take action on them as foreclosures and mortgage defaults skyrocket.
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Why is gold so weak if dollar is crashing on the down side – it is just a conformation of deflation
Sam Adelton
Many of those who cannot look beyond the closing numbers in the stock market every day are questioning the deflation theory. When I wrote about Mortgage scams in 2005 and imminent real estate collapse, people laughed at it. Look what happened.
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Credit card companies raising rates without notice – what is the effect on the economy, stocks and bonds
Peter Oberois
How high can Dow go? As much as the hedge funds and their billion will take it to. But sooner or later the deflation will take it down where it belongs – far bellow 7000.
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Can Gold make it to $800?
Peter Oberois
The deflation is not that great for gold. It can create the damp in the gold market. If dollar collapses, however, gold will rise far above $800 an oz.
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How far can the stock market go based on artificial liquidity in the hands of the hedge funds?
Sam Adelton
The dividend tax rule enacted a few years back is responsible for the mega bubble. The big name stocks are more of bond play. But guess what happens when bonds default on interest payments? That is exactly what the fate of Dow is.
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The divergence continues, stock market still advancing against the worst economic conditions in the last thirty years
Alan Hershey
The double pendulum, when let go becomes, uncontrollable. There are mathematical models to understand its motion. There is no mathematics that can cure the economy and the stock market now.
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