Rising income = inflation = Higher interest. Yes we can inflate ourselves out with our printing press, and china will stay indexed to the dollar for a while and they will go down with the ship, but we can save our economy while controlling inflation from being a runaway freight train. But housing is doomed in the bubblicious areas, and general population wise its going to be tought times on the house sales front. however eventually rents will rise, make houses rentable for payments if you bought at low fixed rates and will be near impossible to sell cos no one will want to borrow at 15% interest.
Now about short positions to back their equity … evidently a well known secret in the industry is the 9/11 situation where a few brokers who had a good amount of shorts made like bandits in that 9/17 drop of 1100 points. That has now lead the market to believe short covering is a worth while position. They have tons of the equity. They anticipate a fall on bad news from the sector. They dont sell the equity, they cover it with shorts. Now 3 months out they dump the equity at near today’srice, and their shots which will expire a few weeks later is also up now. Its a very insidious way of inside trading that is legal. You know the stock is going to drop. You hold it and leverage your way into the short, then dump it where you make money on both sides.
Cool.
Cow_tipping.
