Heads Up! When Greenspan
Warns.......people had BETTER LISTEN!!!
Main Entry: stag·fla·tion
Pronunciation: "stag-'flA-sh&n
Function: noun
Etymology: blend of stagnation and inflation
Date: 1965
: persistent inflation combined with stagnant consumer
demand and relatively high unemployment
- stag·fla·tion·ary /-sh&-"ner-E/
adjective
(Also, super high interest and mortgage rates, which
literally STOPS the real estate market. High mortgage rates reduces
the number of buyers who can "afford" YOUR house. Sellers refuse
to lower the selling price of their house because they have it in their
minds that THEIR house is worth more, than it really is now. So sellers
won't come down, and buyers CAN'T go up.......so very FEW transactions
take place. Real Estate market STALLS.) In the late 90's Greenspan
kept warning that the stock market was OVER VALUED.....and what happened
in spring of 2000????? You got it! One more WARNING here of
the INEVITABLE in our NEAR FUTURE. Wise men listen.
http://reuters.myway.com/article/20050421/2005-04-21T141342Z_01_WAT003934_RTRIDST_0_NEWS-ECONOMY-GREENSPAN-DC.html