
11-08-2007, 09:05 PM
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| Senior Member | | Join Date: Oct 2005
Posts: 2,226 | |
This is a struggle between inflation and deflation how strong the inflation force for the economy and how strong the temporarily deflationary force from the slowing housing market. Economy wants to inflate all cost, including labor cost, gas cost, construction cost, all costs you can think of. However, housing market is in the process of deflating the previously inflated price. With that two process going on, it's a struggle. We don't really know at this moment which side has stronger power. Thus, I am open to 2 scenarios, one is a slow recovery, taking 7-8 years, another scenario is a fast recovery, taking only 2-3 years. |
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