General Stock Ideas

[bigworld]

gfp: Don't be fooled. The glut of NEW homes has dissipated because builders have slowed down considerably since the 2008 melt down. But there is still a HUGE glut of foreclosed and bank-owned properties...upwards of 8 million units by some estimates. And real estate has not yet bottomed, despite the recent flurry of sales activity driven by mortgage rates briefly hitting a 58 year low. I remember all too well what happens to interest rates after a Federal Reserve printing orgy is over....much higher interest rates are needed to quell the inevitable inflation. So when interest rates rise above 10% in a few years we'll see the real estate market decimated once again. New home sales will really dry up because builders won't be able to afford construction loans.