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Richard Russell - The Housing Bubble in the US


  1. "I find the housing boom (I believe it's a bubble) ominous. Why is that? I find it ominous because we're in a primary bear market, and here you have US consumers buying their heads off in high-priced houses. Somewhere ahead the bear is going to turn his attention to the housing market, and with Americans loaded with record-priced homes, what happens if the housing bubble bursts?

    It's widely conceded that the consumer has "saved" the US economy. And it's widely conceded that rising home prices have "saved" the consumer, allowing consumers to spend, spend, and spend some more.

    So what happens when the housing bubble bursts? What happens when the bear sinks his long, sharp claws into the housing bubble? Obviously, the world's greatest inflationist, Alan Greenspan is thinking along those same lines, and I believe that's the reason why he's again stepping on the liquidity accelerator, pressing the pedal to the metal.

    Greenie knows that he has to keep the housing bubble going. "God help us," he must be thinking "if the housing bubble bursts."

    The Russell opinion -- "It's only a matter of time before the bear attacks the housing bubble."

    Track of the Bear -- The bear market is most visible in the broad indices. The broader the stock index, the clearer the action of the primary bear trend."

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