Deflation, inflation – Housing. Thinkng out loud

[jpinpb]

I remember Temecula when it was Rancho California.

It was a commuter town when it started. Cheap and people commuted either to L.A., San Diego, Riverside or San Bernardino. Slowly at first, but accelerated in recent years, it became a self-sustaining city w/hospitals and courthouse and all the businesses associated w/most cities. Jobs were created along w/housing.

The artificially created prices is the most damaging thing to happen to these towns. People relied on equity to support a new lifestyle. Clearly not sustainable. I agree that prices will have to return to normal for things to be balanced. That doesn’t mean it will happen. Ideally, it should and if it did, it would solve a lot of problems.

They said the bubble wouldn’t pop and they are doing their darnest to drag this out, letting the air out slowly and gently and painfully long.

[DWCAP]

[quote=temeculaguy]DWCAP, I think you misinterpreted HLS’ post. He was not claiming that Irvine, Santa Clarita and Temecula boomed and then were cut off by high gas prices. He was pointing out that over time in So Cal, we’ve had ups and downs but this latest up was an exception, that we aren’t in a housing crisis but rather a needed reset to reality and traditional financing. Having lived in two of the three aforementioned regions during their booms, in the case of Irvine in the 1970’s and Santa Clarita of the 1980’s, both attracted people and ended up quite autonomous today, especially Irvine. Irvine isn’t being cut off because people can’t afford to get to their jobs from there, the jobs are there now.

People didn’t stop buying because of commodity prices, people stopped because the prices were fundamentally unsound, caused by destructive financing.[/quote]

Actually, I think you misread my post. I totally agree with HLS that the problem is that housing because unaffordable to almost everyone without BS programs. This is a return to fundamentals, an action of the invisable hand punishing the bad speculation of the past few years. This isnt a case where a regions dominant industry imploded and alot of people couldnt work anymore, ala detroit. This is a case where a commodity class (housing) bubbled and is now self correcting. I totally agree.

I included gas prices because it caused people to re-evaluate their habits, including commuting and home buying. And it bubbled at the same time.

My bad for being unclear.

[DWCAP]

[quote=temeculaguy]DWCAP, I think you misinterpreted HLS’ post. He was not claiming that Irvine, Santa Clarita and Temecula boomed and then were cut off by high gas prices. He was pointing out that over time in So Cal, we’ve had ups and downs but this latest up was an exception, that we aren’t in a housing crisis but rather a needed reset to reality and traditional financing. Having lived in two of the three aforementioned regions during their booms, in the case of Irvine in the 1970’s and Santa Clarita of the 1980’s, both attracted people and ended up quite autonomous today, especially Irvine. Irvine isn’t being cut off because people can’t afford to get to their jobs from there, the jobs are there now.

People didn’t stop buying because of commodity prices, people stopped because the prices were fundamentally unsound, caused by destructive financing.[/quote]

Actually, I think you misread my post. I totally agree with HLS that the problem is that housing because unaffordable to almost everyone without BS programs. This is a return to fundamentals, an action of the invisable hand punishing the bad speculation of the past few years. This isnt a case where a regions dominant industry imploded and alot of people couldnt work anymore, ala detroit. This is a case where a commodity class (housing) bubbled and is now self correcting. I totally agree.

I included gas prices because it caused people to re-evaluate their habits, including commuting and home buying. And it bubbled at the same time.

My bad for being unclear.

[DWCAP]

[quote=temeculaguy]DWCAP, I think you misinterpreted HLS’ post. He was not claiming that Irvine, Santa Clarita and Temecula boomed and then were cut off by high gas prices. He was pointing out that over time in So Cal, we’ve had ups and downs but this latest up was an exception, that we aren’t in a housing crisis but rather a needed reset to reality and traditional financing. Having lived in two of the three aforementioned regions during their booms, in the case of Irvine in the 1970’s and Santa Clarita of the 1980’s, both attracted people and ended up quite autonomous today, especially Irvine. Irvine isn’t being cut off because people can’t afford to get to their jobs from there, the jobs are there now.

People didn’t stop buying because of commodity prices, people stopped because the prices were fundamentally unsound, caused by destructive financing.[/quote]

Actually, I think you misread my post. I totally agree with HLS that the problem is that housing because unaffordable to almost everyone without BS programs. This is a return to fundamentals, an action of the invisable hand punishing the bad speculation of the past few years. This isnt a case where a regions dominant industry imploded and alot of people couldnt work anymore, ala detroit. This is a case where a commodity class (housing) bubbled and is now self correcting. I totally agree.

I included gas prices because it caused people to re-evaluate their habits, including commuting and home buying. And it bubbled at the same time.

My bad for being unclear.

[DWCAP]

[quote=temeculaguy]DWCAP, I think you misinterpreted HLS’ post. He was not claiming that Irvine, Santa Clarita and Temecula boomed and then were cut off by high gas prices. He was pointing out that over time in So Cal, we’ve had ups and downs but this latest up was an exception, that we aren’t in a housing crisis but rather a needed reset to reality and traditional financing. Having lived in two of the three aforementioned regions during their booms, in the case of Irvine in the 1970’s and Santa Clarita of the 1980’s, both attracted people and ended up quite autonomous today, especially Irvine. Irvine isn’t being cut off because people can’t afford to get to their jobs from there, the jobs are there now.

People didn’t stop buying because of commodity prices, people stopped because the prices were fundamentally unsound, caused by destructive financing.[/quote]

Actually, I think you misread my post. I totally agree with HLS that the problem is that housing because unaffordable to almost everyone without BS programs. This is a return to fundamentals, an action of the invisable hand punishing the bad speculation of the past few years. This isnt a case where a regions dominant industry imploded and alot of people couldnt work anymore, ala detroit. This is a case where a commodity class (housing) bubbled and is now self correcting. I totally agree.

I included gas prices because it caused people to re-evaluate their habits, including commuting and home buying. And it bubbled at the same time.

My bad for being unclear.

[DWCAP]

[quote=temeculaguy]DWCAP, I think you misinterpreted HLS’ post. He was not claiming that Irvine, Santa Clarita and Temecula boomed and then were cut off by high gas prices. He was pointing out that over time in So Cal, we’ve had ups and downs but this latest up was an exception, that we aren’t in a housing crisis but rather a needed reset to reality and traditional financing. Having lived in two of the three aforementioned regions during their booms, in the case of Irvine in the 1970’s and Santa Clarita of the 1980’s, both attracted people and ended up quite autonomous today, especially Irvine. Irvine isn’t being cut off because people can’t afford to get to their jobs from there, the jobs are there now.

People didn’t stop buying because of commodity prices, people stopped because the prices were fundamentally unsound, caused by destructive financing.[/quote]

Actually, I think you misread my post. I totally agree with HLS that the problem is that housing because unaffordable to almost everyone without BS programs. This is a return to fundamentals, an action of the invisable hand punishing the bad speculation of the past few years. This isnt a case where a regions dominant industry imploded and alot of people couldnt work anymore, ala detroit. This is a case where a commodity class (housing) bubbled and is now self correcting. I totally agree.

I included gas prices because it caused people to re-evaluate their habits, including commuting and home buying. And it bubbled at the same time.

My bad for being unclear.

[temeculaguy]

I took your post to literal, your clarification makes sense to me now and I agree with it. You have to realize on the weekend I’m more drunk than during the week so you need to dumb it down for me on weekends. Were good, Hugs.

“Invisible Hand”, now your talking my language, I’m thinking of sending copies of Adam Smith’s book to the fed governors and Obama in hopes they will realize that things never change and they will be better off if they keep their remaining tarp money to themselves and letting this thing play out on it’s own. The invisible hand will have it’s way no matter what they spend, we can get to the same point with less debt if they just let it happen.

[temeculaguy]

I took your post to literal, your clarification makes sense to me now and I agree with it. You have to realize on the weekend I’m more drunk than during the week so you need to dumb it down for me on weekends. Were good, Hugs.

“Invisible Hand”, now your talking my language, I’m thinking of sending copies of Adam Smith’s book to the fed governors and Obama in hopes they will realize that things never change and they will be better off if they keep their remaining tarp money to themselves and letting this thing play out on it’s own. The invisible hand will have it’s way no matter what they spend, we can get to the same point with less debt if they just let it happen.

[temeculaguy]

I took your post to literal, your clarification makes sense to me now and I agree with it. You have to realize on the weekend I’m more drunk than during the week so you need to dumb it down for me on weekends. Were good, Hugs.

“Invisible Hand”, now your talking my language, I’m thinking of sending copies of Adam Smith’s book to the fed governors and Obama in hopes they will realize that things never change and they will be better off if they keep their remaining tarp money to themselves and letting this thing play out on it’s own. The invisible hand will have it’s way no matter what they spend, we can get to the same point with less debt if they just let it happen.

[temeculaguy]

I took your post to literal, your clarification makes sense to me now and I agree with it. You have to realize on the weekend I’m more drunk than during the week so you need to dumb it down for me on weekends. Were good, Hugs.

“Invisible Hand”, now your talking my language, I’m thinking of sending copies of Adam Smith’s book to the fed governors and Obama in hopes they will realize that things never change and they will be better off if they keep their remaining tarp money to themselves and letting this thing play out on it’s own. The invisible hand will have it’s way no matter what they spend, we can get to the same point with less debt if they just let it happen.

[temeculaguy]

I took your post to literal, your clarification makes sense to me now and I agree with it. You have to realize on the weekend I’m more drunk than during the week so you need to dumb it down for me on weekends. Were good, Hugs.

“Invisible Hand”, now your talking my language, I’m thinking of sending copies of Adam Smith’s book to the fed governors and Obama in hopes they will realize that things never change and they will be better off if they keep their remaining tarp money to themselves and letting this thing play out on it’s own. The invisible hand will have it’s way no matter what they spend, we can get to the same point with less debt if they just let it happen.

[4plexowner]

temeculaguy – you mean you don’t think that 3 million shovel jobs are going to save our FIRE economy? that’s unpatriotic, dude! be careful or homeland security may come knocking

[4plexowner]

temeculaguy – you mean you don’t think that 3 million shovel jobs are going to save our FIRE economy? that’s unpatriotic, dude! be careful or homeland security may come knocking

[4plexowner]

temeculaguy – you mean you don’t think that 3 million shovel jobs are going to save our FIRE economy? that’s unpatriotic, dude! be careful or homeland security may come knocking

[4plexowner]

temeculaguy – you mean you don’t think that 3 million shovel jobs are going to save our FIRE economy? that’s unpatriotic, dude! be careful or homeland security may come knocking

[Author]

Posts