Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Misoft> The FED is worried about a deflationary

debt collapse coming on the back of a collapse in the labor market then hitting home demand and prices. This is the big elephant sitting in the board room at their meetings. If home prices start to decline at a rapid rate on the back of poor labor markets, the continous cash out refinancing wave(s) which keep the consumer liquid will shut down, and despite lower and lower rates, with falling home prices the economy will shutter and collapse. Most of the wealth of the USA is stored in the home. Declining home prices will collapse the economy.

TO me this is the most important indicator to watch.