About dunnross

dunnross's most recent comments:

On 31 Mar 2013 in Rising interest rates WILL NOT depress house values, dunnross said:
robertoaribas says

worth $350K or so today...

Don't worry. It will be back to $40K, much sooner than you think!
On 31 Mar 2013 in Rising interest rates WILL NOT depress house values, dunnross said:
iwog says

The housing bubble was disconnected from interest rates because banks were giving people money regardless of their ability to pay it back.

This was just one of the manifestations of the bubble. The bubble has much deeper roots, which started back in the 1970's when the Mortgage Backed Security market was created, the FED and state gov't started meddling in the housing business (mortgage interest deductions, prop 13 and others), as well as taking us off the gold standard.
On 30 Mar 2013 in Rising interest rates WILL NOT depress house values, dunnross said:
House prices will be falling relative to the gold price, whenever interest rates start to rise. This is because, gold has no liability, and its price is not hampered by the rising interest rates as much as debt instruments like real-estate. In late 1970's the gold price didn't fall until interest rates got up to 18%. So, when interest rates start rising again, expect a big crash in house prices relative to the "real" currency.

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