Buying with monopoly money

[Anonymous]

[quote=SD Realtor]So necessary commodities like food, resources and other tangible goods will go up in cost.[/quote]

Why?

What will prompt my local Ralphs to raise prices?

Is the store manager going to read about QE2 and start remarking items on the shelves?

And what will stop the manager at Albertsons from lowering his prices? Because of high unemployment his cost of labor is lower. So he decides to get an edge on Ralphs…

Can someone explain exactly how current policy leads to massive inflation without simply using the premise that “printing money leads to inflation?”

[Effective Demand]

imho, i think the fed has won the inflation/deflation debate and that changes the purchase dynamics a lot. Tempering that thought is that we have a lot of stuff to still get through. Also i think many people on the inflation debate equate inflation with hyperinflation and i think that is a mistake (especially if they are using that fear and buying at the limits of their affordability)

Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.

[Effective Demand]

imho, i think the fed has won the inflation/deflation debate and that changes the purchase dynamics a lot. Tempering that thought is that we have a lot of stuff to still get through. Also i think many people on the inflation debate equate inflation with hyperinflation and i think that is a mistake (especially if they are using that fear and buying at the limits of their affordability)

Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.

[Effective Demand]

imho, i think the fed has won the inflation/deflation debate and that changes the purchase dynamics a lot. Tempering that thought is that we have a lot of stuff to still get through. Also i think many people on the inflation debate equate inflation with hyperinflation and i think that is a mistake (especially if they are using that fear and buying at the limits of their affordability)

Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.

[Effective Demand]

imho, i think the fed has won the inflation/deflation debate and that changes the purchase dynamics a lot. Tempering that thought is that we have a lot of stuff to still get through. Also i think many people on the inflation debate equate inflation with hyperinflation and i think that is a mistake (especially if they are using that fear and buying at the limits of their affordability)

Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.

[Effective Demand]

imho, i think the fed has won the inflation/deflation debate and that changes the purchase dynamics a lot. Tempering that thought is that we have a lot of stuff to still get through. Also i think many people on the inflation debate equate inflation with hyperinflation and i think that is a mistake (especially if they are using that fear and buying at the limits of their affordability)

Buy a house for the right reasons. its right for you and your family and you can afford it. Dont buy expecting to get rich off the house or expecting the house will protect ,you from the ills of the world.

[ocrenter]

[quote=SD Realtor]Pretty much agree with you ocr. I don’t see home prices rising due to the rate hikes that will come. Rather I see them depreciating, it is just how severe that I am unsure of. Inflation without job growth to me will be the worst of both worlds. So necessary commodities like food, resources and other tangible goods will go up in cost. Similarly other investment vehicles like bonds and such will be giving healthy returns as the money supply tightens. Also, as with any situation there will be alot of people with money and they will take advantage of the cheaper rela estate without having to incur large financing issues. To me depreciation will occur but I am not sure how much. It will be a great time to buy real estate but not if you have to finance much of it. [/quote]

agree we are unlikely to see significant housing appreciation. as for depreciation, I think we would have to break that down to segments of the market. for example the over $1 million market. Overall I think for the most part depreciation of the middle of the road inventory is pretty much done.

overall rising prices certainly is a concern, but I do believe WE THE PEOPLE prefer overall rise in daily prices than any policy that would lead to significant drop in housing price. And the government will bend to the will of the people.

[ocrenter]

[quote=SD Realtor]Pretty much agree with you ocr. I don’t see home prices rising due to the rate hikes that will come. Rather I see them depreciating, it is just how severe that I am unsure of. Inflation without job growth to me will be the worst of both worlds. So necessary commodities like food, resources and other tangible goods will go up in cost. Similarly other investment vehicles like bonds and such will be giving healthy returns as the money supply tightens. Also, as with any situation there will be alot of people with money and they will take advantage of the cheaper rela estate without having to incur large financing issues. To me depreciation will occur but I am not sure how much. It will be a great time to buy real estate but not if you have to finance much of it. [/quote]

agree we are unlikely to see significant housing appreciation. as for depreciation, I think we would have to break that down to segments of the market. for example the over $1 million market. Overall I think for the most part depreciation of the middle of the road inventory is pretty much done.

overall rising prices certainly is a concern, but I do believe WE THE PEOPLE prefer overall rise in daily prices than any policy that would lead to significant drop in housing price. And the government will bend to the will of the people.

[ocrenter]

[quote=SD Realtor]Pretty much agree with you ocr. I don’t see home prices rising due to the rate hikes that will come. Rather I see them depreciating, it is just how severe that I am unsure of. Inflation without job growth to me will be the worst of both worlds. So necessary commodities like food, resources and other tangible goods will go up in cost. Similarly other investment vehicles like bonds and such will be giving healthy returns as the money supply tightens. Also, as with any situation there will be alot of people with money and they will take advantage of the cheaper rela estate without having to incur large financing issues. To me depreciation will occur but I am not sure how much. It will be a great time to buy real estate but not if you have to finance much of it. [/quote]

agree we are unlikely to see significant housing appreciation. as for depreciation, I think we would have to break that down to segments of the market. for example the over $1 million market. Overall I think for the most part depreciation of the middle of the road inventory is pretty much done.

overall rising prices certainly is a concern, but I do believe WE THE PEOPLE prefer overall rise in daily prices than any policy that would lead to significant drop in housing price. And the government will bend to the will of the people.

[ocrenter]

[quote=SD Realtor]Pretty much agree with you ocr. I don’t see home prices rising due to the rate hikes that will come. Rather I see them depreciating, it is just how severe that I am unsure of. Inflation without job growth to me will be the worst of both worlds. So necessary commodities like food, resources and other tangible goods will go up in cost. Similarly other investment vehicles like bonds and such will be giving healthy returns as the money supply tightens. Also, as with any situation there will be alot of people with money and they will take advantage of the cheaper rela estate without having to incur large financing issues. To me depreciation will occur but I am not sure how much. It will be a great time to buy real estate but not if you have to finance much of it. [/quote]

agree we are unlikely to see significant housing appreciation. as for depreciation, I think we would have to break that down to segments of the market. for example the over $1 million market. Overall I think for the most part depreciation of the middle of the road inventory is pretty much done.

overall rising prices certainly is a concern, but I do believe WE THE PEOPLE prefer overall rise in daily prices than any policy that would lead to significant drop in housing price. And the government will bend to the will of the people.

[ocrenter]

[quote=SD Realtor]Pretty much agree with you ocr. I don’t see home prices rising due to the rate hikes that will come. Rather I see them depreciating, it is just how severe that I am unsure of. Inflation without job growth to me will be the worst of both worlds. So necessary commodities like food, resources and other tangible goods will go up in cost. Similarly other investment vehicles like bonds and such will be giving healthy returns as the money supply tightens. Also, as with any situation there will be alot of people with money and they will take advantage of the cheaper rela estate without having to incur large financing issues. To me depreciation will occur but I am not sure how much. It will be a great time to buy real estate but not if you have to finance much of it. [/quote]

agree we are unlikely to see significant housing appreciation. as for depreciation, I think we would have to break that down to segments of the market. for example the over $1 million market. Overall I think for the most part depreciation of the middle of the road inventory is pretty much done.

overall rising prices certainly is a concern, but I do believe WE THE PEOPLE prefer overall rise in daily prices than any policy that would lead to significant drop in housing price. And the government will bend to the will of the people.

[SD Realtor]

hahahaha

Excellent post. Yes WE THE PEOPLE do want that.

Very good point about different price levels depreciating differently in a high rate environment. Completely agree with that.

[SD Realtor]

hahahaha

Excellent post. Yes WE THE PEOPLE do want that.

Very good point about different price levels depreciating differently in a high rate environment. Completely agree with that.

[SD Realtor]

hahahaha

Excellent post. Yes WE THE PEOPLE do want that.

Very good point about different price levels depreciating differently in a high rate environment. Completely agree with that.

[SD Realtor]

hahahaha

Excellent post. Yes WE THE PEOPLE do want that.

Very good point about different price levels depreciating differently in a high rate environment. Completely agree with that.

[Author]

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