Re: Interest rates and housing

[Technotranscendence]

I'm not sure about the 18-year cycle, but there are political cycles too, such as the Presidential cycle.  Yet this doesn't line up with 18-years.   Regarding why a shift to real estate?  I think because there's a basic belief that real estate is a long lasting store of value.  Other assets tend to be more liquid and follow shorter cycles and cars are less durable.  Or that's my guess.   Regards,   Dan http://uweb.superlink.net/~neptune/BankFAQ.html From: [EMAIL PROTECTED] To: ARMCHAIR-L@mail04.GMU.EDU Sent: Thursday, August 18, 2005 3:57 AM Subject: Re: Interest rates and housing In a message dated 8/16/05 10:24:56 AM, [EMAIL PROTECTED] writes: The last real estate bottom was in 1990, so if this is another 18-year cycle, the next depression would be around 2008.  So far, the economy is tracking the cycle right on schedule.  In my judgment, the economy is entering the plateau stage. Heh, Fred, I guess you are the only armchair economist left.  If government  has causes a real estate price bubble by artificially loweringn interest rates, how can it have an 18-year cycle, and why would it be the same under the federal serve system as it was under free banking or the period from the Civil War to the establishment of the Fed?  Why does the money go into residential real estate and not into stocks or automobiles or other assets? Thanks, David