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To: AdamSelene235
"Given the GSEs make their money by borrowing short term and lending long, NO. Given that they've been borrowing Euros, Yen,Yuan etc. short term and lending dollars long term, Hell No."

That's backwards. Declines in the Dollar (as implied above) drive *up* home prices.

15 posted on 02/02/2005 12:09:34 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
That's backwards. Declines in the Dollar (as implied above) drive *up* home prices.

No, expansion of credit plus false incentives for home indebtedness (not ownership) inflates home prices. This ultimately leads to dollar declines, but as I have said many times, inflation is neither instantaneous or homogeneous.

(here we go again)

18 posted on 02/02/2005 12:12:46 PM PST by AdamSelene235 (Truth has become so rare and precious she is always attended to by a bodyguard of lies.)
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