Deadzone, you are reading much more into my post than I actually said, which was limited to the influence of interest rate changes to housing price changes.
As I said, and you echoed, lots of factors other than interest rates also matter. And those factors are always changing–no cycle is exactly like the last. And to explain events, predict the future, make investment decisions, we need those dratted economic theories. We need to test them, invite critics to challenge them, pay attention to the past records of advocates and detractors, etc. And study history to learn its lessons.
