[quote=temeculaguy] So many factors can have an effect, I think inflation is something that gets very little play these days but I don’t see how it is avoided in the next few years. I also don’t think the gov’t will fight it since it will help solve both the housing crisis and the debt issues.[/quote]
Very little play ?…..Did you read my posts ? Inflation will have EVERYTHING to do with the slow recovery…As I stated earlier, the Feds are keeping rates artificially low by purchasing US treasuries…but they can’t do that forever because if they do, hyperinflation will hit with a vengeance. As it is, the money already spent will create significant inflation in the not too distant future, and the end result will be higher interest rates. In fact, while they might not admit it publically, the Feds are trying to CREATE inflation to solve the huge debt problem that runaway spending has caused.
On a side note, the next bubble to burst could very well be the bond market. How the Federal Reserve reacts in the next six to nine months will go a long way in determining what mortgage rates/housing market will look like in 2010, 2011, and beyond.
