Confused with the current market

[patientrenter]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

Home prices in So Cal have been half of what they are now most of the time. It’s only in the recent mega-bubble, and during the frothier peaks of the prior bubble in the late 1980’s that they reached their current level (which is down from the ridiculous all-time peak of 2007). During all those “normal” years in So Cal, people worked, slept, ate, laughed, bought homes, sold homes, etc.

What is truly nutty is that people think that reverting to normal will lead to the world falling apart. Nonsense.

[Arraya]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

The all powerful Oz that is the Fed is not as powerful as you think, much like the movie. I’ll say it again, you can’t just wave a wand, print some digital dollars and make a credit collapse that dwarfs that of the great depression go away. Though, you can delay it at the expense of more public debt.

Right at the beginning of the great depression the vast majority of analysts were calling for inflation as well, because of all the printing they did. One cannot print out of the liquidity trap. Deflation will run its course, and that will take a long time as deflation and depression are mutually reinforcing. When it is over, then we could see hyperinflation, but that is a few years(2-4) away at least. Unless, the world mutually agrees to not use the current financial world financial order, which would be a systemic collapse, chaotic and not associated with any “flation”.

At this point I don’t see that as a good strategic move because of vast dollar reserves and the desire to exchange them for something else before that happens. Right not it is just a bunch of lip service by our creditors as a power play.

The other interesting observation of the great depression is that, not for a second did main stream economists ever say anything but things were about to turn around. They did this for a decade until it did.

[img_assist|nid=12219|title=We are at return to normal|desc=|link=node|align=left|width=450|height=600]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.

[Arraya]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

The all powerful Oz that is the Fed is not as powerful as you think, much like the movie. I’ll say it again, you can’t just wave a wand, print some digital dollars and make a credit collapse that dwarfs that of the great depression go away. Though, you can delay it at the expense of more public debt.

Right at the beginning of the great depression the vast majority of analysts were calling for inflation as well, because of all the printing they did. One cannot print out of the liquidity trap. Deflation will run its course, and that will take a long time as deflation and depression are mutually reinforcing. When it is over, then we could see hyperinflation, but that is a few years(2-4) away at least. Unless, the world mutually agrees to not use the current financial world financial order, which would be a systemic collapse, chaotic and not associated with any “flation”.

At this point I don’t see that as a good strategic move because of vast dollar reserves and the desire to exchange them for something else before that happens. Right not it is just a bunch of lip service by our creditors as a power play.

The other interesting observation of the great depression is that, not for a second did main stream economists ever say anything but things were about to turn around. They did this for a decade until it did.

[img_assist|nid=12219|title=We are at return to normal|desc=|link=node|align=left|width=450|height=600]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.

[Arraya]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

The all powerful Oz that is the Fed is not as powerful as you think, much like the movie. I’ll say it again, you can’t just wave a wand, print some digital dollars and make a credit collapse that dwarfs that of the great depression go away. Though, you can delay it at the expense of more public debt.

Right at the beginning of the great depression the vast majority of analysts were calling for inflation as well, because of all the printing they did. One cannot print out of the liquidity trap. Deflation will run its course, and that will take a long time as deflation and depression are mutually reinforcing. When it is over, then we could see hyperinflation, but that is a few years(2-4) away at least. Unless, the world mutually agrees to not use the current financial world financial order, which would be a systemic collapse, chaotic and not associated with any “flation”.

At this point I don’t see that as a good strategic move because of vast dollar reserves and the desire to exchange them for something else before that happens. Right not it is just a bunch of lip service by our creditors as a power play.

The other interesting observation of the great depression is that, not for a second did main stream economists ever say anything but things were about to turn around. They did this for a decade until it did.

[img_assist|nid=12219|title=We are at return to normal|desc=|link=node|align=left|width=450|height=600]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.

[Arraya]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

The all powerful Oz that is the Fed is not as powerful as you think, much like the movie. I’ll say it again, you can’t just wave a wand, print some digital dollars and make a credit collapse that dwarfs that of the great depression go away. Though, you can delay it at the expense of more public debt.

Right at the beginning of the great depression the vast majority of analysts were calling for inflation as well, because of all the printing they did. One cannot print out of the liquidity trap. Deflation will run its course, and that will take a long time as deflation and depression are mutually reinforcing. When it is over, then we could see hyperinflation, but that is a few years(2-4) away at least. Unless, the world mutually agrees to not use the current financial world financial order, which would be a systemic collapse, chaotic and not associated with any “flation”.

At this point I don’t see that as a good strategic move because of vast dollar reserves and the desire to exchange them for something else before that happens. Right not it is just a bunch of lip service by our creditors as a power play.

The other interesting observation of the great depression is that, not for a second did main stream economists ever say anything but things were about to turn around. They did this for a decade until it did.

[img_assist|nid=12219|title=We are at return to normal|desc=|link=node|align=left|width=450|height=600]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.

[Arraya]

[quote=AN][quote=Arraya]I think prices will get cut in half again.[/quote]
I’d love to see that. I doubt it’ll ever happen though. If it does happen, at least 50% of us probably won’t have a job and the other 48% won’t be able to buy the house anyways since it’ll be cash only deal.[/quote]

The all powerful Oz that is the Fed is not as powerful as you think, much like the movie. I’ll say it again, you can’t just wave a wand, print some digital dollars and make a credit collapse that dwarfs that of the great depression go away. Though, you can delay it at the expense of more public debt.

Right at the beginning of the great depression the vast majority of analysts were calling for inflation as well, because of all the printing they did. One cannot print out of the liquidity trap. Deflation will run its course, and that will take a long time as deflation and depression are mutually reinforcing. When it is over, then we could see hyperinflation, but that is a few years(2-4) away at least. Unless, the world mutually agrees to not use the current financial world financial order, which would be a systemic collapse, chaotic and not associated with any “flation”.

At this point I don’t see that as a good strategic move because of vast dollar reserves and the desire to exchange them for something else before that happens. Right not it is just a bunch of lip service by our creditors as a power play.

The other interesting observation of the great depression is that, not for a second did main stream economists ever say anything but things were about to turn around. They did this for a decade until it did.

[img_assist|nid=12219|title=We are at return to normal|desc=|link=node|align=left|width=450|height=600]

Now, it looks like the current rally is over and we are getting ready for the next leg down.

Stay liquid.

[outtamojo]

Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?

[outtamojo]

Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?

[outtamojo]

Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?

[outtamojo]

Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?

[outtamojo]

Not to criticize spending habits, but shouldn’t 170K income/ year be plenty even w/ kids?

[Arraya]

[quote=patientrenter]Scarlett,
Yet we all pretend that the complicated and expensive system we’ve constructed to keep home prices sky-high is rational. That too is nuts.[/quote]

Exactly and it will bite us in the ass, in the end…

[Arraya]

[quote=patientrenter]Scarlett,
Yet we all pretend that the complicated and expensive system we’ve constructed to keep home prices sky-high is rational. That too is nuts.[/quote]

Exactly and it will bite us in the ass, in the end…

[Arraya]

[quote=patientrenter]Scarlett,
Yet we all pretend that the complicated and expensive system we’ve constructed to keep home prices sky-high is rational. That too is nuts.[/quote]

Exactly and it will bite us in the ass, in the end…

[Arraya]

[quote=patientrenter]Scarlett,
Yet we all pretend that the complicated and expensive system we’ve constructed to keep home prices sky-high is rational. That too is nuts.[/quote]

Exactly and it will bite us in the ass, in the end…

[Author]

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