[quote=CA renter]This was a CREDIT bubble, not a housing bubble.[/quote]
I agree partially, all the investment money that drained out of the tech bubble created a huge pool of loan money, at the same time interest was still way low. This had the net effect of inflating prices of all big ticket items as people were ‘flush’ with excess cheap money and they spent like there was no tomorrow.
Once underway, housing became a bubble in itself, blowing it way above what even the credit bubble could pump into it.
Thus, we now have two very big bubbles deflating, which is bringing nearly everything else down with it.
What a wild ride!
To get back on topic that started this thread, Thursday was quite a comeback rally, and Friday was a continuation, right up to the point where people pulled out to put their money back into cash for the weekend.
The question is, whether we’re in for a continuation of the rally next week, or are dropping further down the slope? My gut tells me we’ll be headed further down, but I seem to be a contrary indicator of late, so it may be good advise if you bet against me LOL.
