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Investorman

08/23/08 8:20 PM

#257246 RE: jimmym4 #257245

This is your naked short specialist. She made some predictions back in 2003 that were just a bit off the mark. Or you could say she didn't know her a$$ from a hole in the ground.

Growth Strategies, Aug 2003

Susan Trimbath is senior research economist at the Milken Foundation and author of "A New Kind of Gold? Investment in Housing in Times of Economic Uncertainty." Her thesis is that housing prices will continue to rise due to government policies that maximize demand while restricting supply, thus potentially ending the boom-bust cycle that has characterized the housing market for decades.

The significance of all this is that it could mean we've seen the end of the boom-bust cycle in real estate. Writes Trimbath:

The smooth, steady rise in the value of homes - and therefore the value of home builders - should mean we'll see increased access to the capital and financing that could be used to reduce the shortage of housing in the United States.