re: Interest Rate Survey,were you right or wrong G Hi...

re: Interest Rate Survey,were you right or wrong G Hi Grant,
Appreciate your effort of reply. I agree the US is in a housing bubble but it's an uneven one. Saw these scary figures today.

"The five most expensive markets in the nation in order are Boston, where the percentage of income devoted to mortgage payment is 44.9%, San Diego at 43.1%, Fort Lauderdale 29.1%, San Francisco at 47% and Miami at 30.0%" I suspect that the US figues are similar to ours and I also suspect that the distribution of the "bubble" is similarly uneven ie in Oz it's Sydney and Melb and maybe Bris where there have been big appreciations of value but in many other places this has not happened. Just as in the US the big increases have been in the main commercial cities.

Those are whacking big percentages and one wonders how much more people could pay in the event that interest rates were to go up. The US is clearly in a cleft stick. If they raise rates there will be massive loan defaults and the banking sector will be in trouble. If they dont...?

In regard to what you say about the rationalisation of business and it's re-invention into new and more viable forms, I have little knowledge and can only accept what you say. However, the time course of such changes seems to me to be quite long and I'm focussing my thoughts on the next year or so.