Here we go again (Low low down payment)

[spdrun]

Fortunately, it will take a few years for minimum wagers (even if slightly more UPPITY min wagers) to save up enough even for a 3% down payment. Meanwhile, they’ll keep renting, as they should be.

PS – all I want for Christmas this year is a nice foreclosed home or three where the bumlosers living there have already been kicked out like mangy dogs.

[scaredyclassic]

But how is our gross domestic happiness level doing?

[The-Shoveler]

LOL it’s registering a 5 on the GDP scale .

All I can tell you it’s like crazy busy in L.A.

They can’t build enough is seems.

[scaredyclassic]

YOY my happiness level is way up. 19%.

obviously trees dont grow to the sky but if current trends continue, i could be happy. wait, i might already be happy.

[spdrun]

I’ll be happy when there’s another recession. Chaos == opportunity.

[scaredyclassic]

we always say we’ll be happy when this happens, or that happens. we need to enjoy the current fuckedup chaos we have now and not pray for additional madness and disorder. .

life is a brief opportunity for joy.

http://thepeoplestherapist.com/tag/life-is-a-brief-opportunity-for-joy/

which si the title of a book i want to look at on 1/1/15. written by a former lawyer now therapist who talks to lawyers.

[FlyerInHi]

[quote=CA renter]The Federal Reserve is “lots of people”?
[/quote]
The Federal Reserve buys assets on the open market. They are prohibited from buying directly from Treasury. So the Fed buys from savers.

[quote=CA renter]
And it’s not “lots of people,” even outside of that. The money/power has been concentrated into fewer and fewer hands. [/quote]

That’s social and fiscal policy that calls for things like a higher minimum wage, paid vacation, child care, etc…

[Anonymous]

It’s always awkward when someone predicts the world is going to end and it does not and all they can do is defer their prediction or redefine what the end of the world really means.

You can find yourself sympathizing with them even though they actually seem to want to be right and for people to be suffering.

In the meantime I’ll enjoy the low gas prices.

Ho Ho Ho!

[FlyerInHi]

Merry Christmas.
I know a guy who thinks a financial collapse is imminent because the Fed is buying worthless assets, etc… Banks don’t have enough collateral, etc..

Funny thing is that he got upset when his house didn’t appraise at the value he wanted. So much for worthless assets.

[CA renter]

[quote=The-Shoveler]Then you got the Axis of Happiness.

http://www.cnbc.com/id/102290355

Me I think if they raise the minimum wage that will lift from the bottom, I think that is starting to happen, too slow but its starting.[/quote]

Love the responses from commenters on that real estate fluff piece.

And agree with you on wages maybe, hopefully going up, especially at the bottom which is where it really needs to happen. We can thank unions for that; they’re behind the push for increasing minimum wage (and boycotting/shaming Walmart, McDs, etc.).

[CA renter]

[quote=FlyerInHi][quote=CA renter]The Federal Reserve is “lots of people”?
[/quote]
The Federal Reserve buys assets on the open market. They are prohibited from buying directly from Treasury. So the Fed buys from savers.

[quote=CA renter]
And it’s not “lots of people,” even outside of that. The money/power has been concentrated into fewer and fewer hands. [/quote]

That’s social and fiscal policy that calls for things like a higher minimum wage, paid vacation, child care, etc…[/quote]

Yes, social and fiscal policy are largely responsible for the wealth/income gap, but the Federal Reserve’s policies are what has fueled the booms/bubbles and busts, and this is also significantly responsible for the wealth inequality we’re seeing in this country (and in many other parts of the world, too).

The Fed usually buys from Primary Dealers who may or may not being selling treasuries purchased from Joe Sixpack, the saver. I don’t have exact numbers, but have read that a significant portion of the Fed’s purchases since the economic crisis were new issues, especially the QE portion. And many of the original mortgage-related assets that were purchased by the Fed hadn’t yet been sold on the open market.

And the fact that investors of all stripes are buying so many “risk-free” bonds when interest rates are at/near historic lows shows that there is a tremendous amount of pessimism about the economy, especially when the stock/commodities/housing markets have been on fire, relatively speaking. Many investors are desperate, and they’re scared to death about the future, both individuals and institutional buyers.

[FlyerInHi]

CAr, savers come in all stripes. Joe 6 pack invests through institutions.

The point it that the money to buy treasuries come from savers in USA, Europe, China.. whatever. Those savers would rather have the small premium paid by the Fed than hold the treasuries to maturity.

If savers were to ask higher premium, then interest rates would rise.

The Fed has unlimited cash and they can hold assets for a long time. So far, they haven’t lost any money.

You complain about commodity prices but they are now coming down with the slowdown in Europe and Asia. Oil!! For commodity dependent economies, look to Australia, Canada or Russia.

You keep on talking about a crash that would wipe out all the wealth created since 2009. Not going to happen.

[spdrun]

Before every crash, there are people who say it won’t happen 🙂 The .com bubble was supposed to be permanent. So was the housing bubble. And the 1920s credit bubble. The only questions are how, where, and when.

Here’s to chaos! And opportunity.

[FlyerInHi]

There will be another crash… but just a bump on the road to more economic growth. The economy won’t be destroyed.

Back in 2008 GDP fell less than 4%, if I recall. Thank the Fed and the stimulus that it wasn’t worse.

[spdrun]

Sure, but it will happen 🙂

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