Monday, December 26, 2005

From Forbes

Sara Clemence On Real Estate
12.26.05, 6:00 AM ET

The Big Trend
All eyes on interest rates, of course. Real estate prices have risen dramatically in many--if not most--parts of the United States in the past few years. Newfangled mortgage products, including interest-only loans, have fueled the boom as well as allowed home buyers to afford houses in overheated markets. A serious uptick in mortgage rates will bring the property party to an end. The market can’t accommodate much higher costs.

Now that would be a real interesting article if it were true. What is interesting is how folks like Ms Clemence can write such nonsense and Forbes can print it. The hard cold fact is interest have not risen, yet she writes "the market can't accomodate much higher costs." Does Ms Clemence even know what the rates are today, last month, 6 months ago, last year, two years ago, amd three years ago.

what is driving such poor journalism is the fact that all these clowns missed the tech bubble in the stock market. So they sure won't miss the housing bubble. But you all seen the chart on the interest rates and how the Fed just can't bump the mrtgage rates up despite all they have done. So what. Ms Clemence is determine to prove just how smart she is by running with the herd. The same herd that was recommending World Com to every investor in 2001.

It will be interesting to see what these people say 6 months from now.

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