When Lethargic Rabbits Start Running

Services for Real Estate Pros with Visual Approach Aerial Photography (Visual Approach Photography) Remote Pilot - FAR 107

Lately, my posts have become more about the warnings of government actions and their longer term effects on mortgage rates.  Ultimately, I have been talking about increased inflation, the mortgage rate bubble, and mortgage rates breaking into double digits, all of which could very well happen in the not-so-distant future as a result of Paulson and Bernanke's actions, along with continued "economic stimulus" packages.

Many have questioned why I am talking about rampant inflation when the chief concern right now is deflation?  I have eluded to the answers in my posts, however I have not been able to come up with a great analogy.  Well, as much as I would like to say I came up with this one, I didn't and actually found it in a place most of you have not even heard of, the Taipan Publishing Group.

Yes, the best analogy I have seen to date was presented by Justice Little, where he used rabbits running around a tree to describe monetary velocity, which is quite stagnant right now and the reason the Treasury and Fed are printing money left and right.  here is how he describes it...

To read more, head on over to Florida Mortgage Report...


This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
ActiveRain Community
Mortgage Planning Strategies
All About Mortgages/Mortgage Networking
Realtors Needing the services of the Lending Powers
mortgage rates
florida mortgage rates
fed bailout programs

Spam prevention
Show All Comments
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX


It's an interesting explanation. It works for me.

Thanks for sharing.


Jan 06, 2009 02:25 PM #1
Jay Oku
Academy Mortgage Corporation - Ewa Beach, HI

Interesting and poignant! Good Work.

At the end I was imagining utter Chaos with the rabbits. In this type of market we need to make the most of it... save up some money invest in other endeavors and prepare for anything. 

What would happen with mortgages when the value of a dollar diminshes in his example?


Jan 08, 2009 06:48 PM #2
Robert D. Ashby
Visual Approach Aerial Photography (Visual Approach Photography) - Plantation, FL
Turning Visions into Photographs (and Videos)

Bill...Glad you enjoyed it.

Jay...Mortgage rates will likely climb into the double digits as inflation, maybe even hyper-inflation, takes hold.

Jan 09, 2009 01:19 AM #3
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Robert D. Ashby

Turning Visions into Photographs (and Videos)
Ask me a question
Spam prevention