Deborah (22 Apr 2005)
"Greenspan Warns of Impending STAGFLATION!! (Remember the late 70's & early 80s?)"


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