When Lethargic Rabbits Start Running

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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...

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inflation
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Rainmaker
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William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Robert,

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

Thanks for sharing.

Bill

Jan 06, 2009 02:25 PM #1
Rainer
14,415
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?

Aloha

Jan 08, 2009 06:48 PM #2
Rainmaker
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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
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Rainmaker
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Robert D. Ashby

Turning Visions into Photographs (and Videos)
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