housing deflation hurts the economy?

[jstoesz]

Thats a good point UCG, I totally agree. Are there other downsides, besides consumer confidence/mood? Some of the confidence drain may be negated by the freeing of cash from housing. Unlike stock market investments, housing assets are pretty much unproductive.

Basically, I am trying to free myself from the guilt of cheering on the fall of home prices without making myself freaked about taking a riskier job. Can I have my cake and eat it too?

[(former)FormerSanDiegan]

I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.

[(former)FormerSanDiegan]

I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.

[(former)FormerSanDiegan]

I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.

[(former)FormerSanDiegan]

I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.

[(former)FormerSanDiegan]

I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.

[CA renter]

[quote=FormerSanDiegan]I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.[/quote]

IMHO, what we’ve seen the past few years is how **too much leverage and speculation** can hurt the economy. The damage was done on the way up, not the way down.

It’s not falling prices that caused our problems, it’s the defaults that resulted from overleveraging and too much unsustainable debt that caused our problems.

[CA renter]

[quote=FormerSanDiegan]I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.[/quote]

IMHO, what we’ve seen the past few years is how **too much leverage and speculation** can hurt the economy. The damage was done on the way up, not the way down.

It’s not falling prices that caused our problems, it’s the defaults that resulted from overleveraging and too much unsustainable debt that caused our problems.

[CA renter]

[quote=FormerSanDiegan]I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.[/quote]

IMHO, what we’ve seen the past few years is how **too much leverage and speculation** can hurt the economy. The damage was done on the way up, not the way down.

It’s not falling prices that caused our problems, it’s the defaults that resulted from overleveraging and too much unsustainable debt that caused our problems.

[CA renter]

[quote=FormerSanDiegan]I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.[/quote]

IMHO, what we’ve seen the past few years is how **too much leverage and speculation** can hurt the economy. The damage was done on the way up, not the way down.

It’s not falling prices that caused our problems, it’s the defaults that resulted from overleveraging and too much unsustainable debt that caused our problems.

[CA renter]

[quote=FormerSanDiegan]I believe that the past few years are a pretty good indicator of how asset price deflation can hurt the economy.[/quote]

IMHO, what we’ve seen the past few years is how **too much leverage and speculation** can hurt the economy. The damage was done on the way up, not the way down.

It’s not falling prices that caused our problems, it’s the defaults that resulted from overleveraging and too much unsustainable debt that caused our problems.

[sdrealtor]

Ditto on DataAgent’s assessment of UCGals comment. I was about to write the same thing and saw her post while scrolling down. As much as many would like to think that everyone is underwater and crying plenty of folks are doing fine. When they feel richer they spend more of what they have and that is a major driver of the economy. IMO, this is far more powerful than the HELOC effect where those that dont really have money tak eon debt they cant ever hope to repay.

[sdrealtor]

Ditto on DataAgent’s assessment of UCGals comment. I was about to write the same thing and saw her post while scrolling down. As much as many would like to think that everyone is underwater and crying plenty of folks are doing fine. When they feel richer they spend more of what they have and that is a major driver of the economy. IMO, this is far more powerful than the HELOC effect where those that dont really have money tak eon debt they cant ever hope to repay.

[sdrealtor]

Ditto on DataAgent’s assessment of UCGals comment. I was about to write the same thing and saw her post while scrolling down. As much as many would like to think that everyone is underwater and crying plenty of folks are doing fine. When they feel richer they spend more of what they have and that is a major driver of the economy. IMO, this is far more powerful than the HELOC effect where those that dont really have money tak eon debt they cant ever hope to repay.

[sdrealtor]

Ditto on DataAgent’s assessment of UCGals comment. I was about to write the same thing and saw her post while scrolling down. As much as many would like to think that everyone is underwater and crying plenty of folks are doing fine. When they feel richer they spend more of what they have and that is a major driver of the economy. IMO, this is far more powerful than the HELOC effect where those that dont really have money tak eon debt they cant ever hope to repay.

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