[oceanview]

real estate values in the US will adjust only when interest rates rise, since buyers base the price they are willing to pay on the monthly mortgage payment, not on the actual price they are paying for the property.

japan has no internal consumer based economy of their own, and with China taking their export markets, they are in trouble. their propensity to save is hurting them. they should be taxing savings. hold money in an account, you pay a tax on it every year. encourage people to spend. its radical, but they need it.

[supercat]

real estate values in the US will adjust only when interest rates rise, since buyers base the price they are willing to pay on the monthly mortgage payment, not on the actual price they are paying for the property.

I know this is how most people think, but to my mind it's a recipe for personal financial disaster. Far better to get a $98,000 12%/30 yr mortgage after the bubble bursts than a $180,000 5%/30 yr mortgage before, even though both mortgages have the same $1000/month payment.