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[Don Bowen <don.bowen AT earthlink.net>]

At 3/6/2008, you wrote:
>Do the housing bubbles run on 20 or 30 years cycles? 

There are several things that cause asset price inflation.  Housing is just 
one area where we are closest to the action but it is just one area.  Some 
consider that the current oil price increases are just another asset price 
inflation and it will deflate soon.

Asset price inflate is almost predictable.  First comes the mania, everyone 
needs in on the asset before the prices increase.  Some sort of shock comes 
along to cause a pause then comes the panic when holders of the asset realize 
that the income from the asset cannot pay the interest.  Then comes the panic 
as everyone tries to get out from under the asset with whatever they can get. 
 Put tulips, houses, stocks, etc in as the assets and you can see the trends.


Don Bowen        Awl Knotted Up        KI6DIU
http://www.braingarage.com

My travel journal
http://www.braingarage.com/Dons/Travels/journal/Journal.html