Inflation – Has it arrived?

[Arraya]

[quote=Rich Toscano][quote=CA renter]
Now, we are going to see an end to the govt intervention, as most of the risks that could be transferred to the public have been transferred. This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Why would they do that? That would just put the banks at risk of failure again, in addition to a host of other consequences that would ensure they aren’t re-elected or re-appointed.[/quote]

Well it depends on their perceived need and if the banks are sufficiently protected. Geithner did come out with his “white paper” after two years in the making – stating the NEED for higher down payments and interest rates. Now, obviously, if this was done it would be implemented at a strategic time for election and appointment purposes and probably with bipartisan support and big fan fare as a necessary evil or maybe not

[briansd1]

[quote=sdrealtor] Americans love their homes and love to see them increase in value. When they dont, they blame the politicians. SO the politicians will continue doing whatever is necessary to protect home (and other asset) values. If you beleive they will allow deflation to happen you are betting on a horse that is in the back of the pack chasing butterflies not the one racing to the finish line. It is what it is….[/quote]

I don’t think that it’s asset value per se. And true that politicians will do what it takes to get reelected.

Home values is a tricky business. Houses are the store of wealth for the middle-class and lower-middle class voters.

The upper-classes don’t really care about house values. They care more about financial markets.

Government intervention is all about GDP growth. Without some inflation, we cannot have economic growth. So policies will always be biased towards preventing deflation.

It will be interesting to watch those in Congress who believe that the government getting completely out of housing will create more economic growth and higher house values.

[briansd1]

[quote=sdrealtor] Americans love their homes and love to see them increase in value. When they dont, they blame the politicians. SO the politicians will continue doing whatever is necessary to protect home (and other asset) values. If you beleive they will allow deflation to happen you are betting on a horse that is in the back of the pack chasing butterflies not the one racing to the finish line. It is what it is….[/quote]

I don’t think that it’s asset value per se. And true that politicians will do what it takes to get reelected.

Home values is a tricky business. Houses are the store of wealth for the middle-class and lower-middle class voters.

The upper-classes don’t really care about house values. They care more about financial markets.

Government intervention is all about GDP growth. Without some inflation, we cannot have economic growth. So policies will always be biased towards preventing deflation.

It will be interesting to watch those in Congress who believe that the government getting completely out of housing will create more economic growth and higher house values.

[briansd1]

[quote=sdrealtor] Americans love their homes and love to see them increase in value. When they dont, they blame the politicians. SO the politicians will continue doing whatever is necessary to protect home (and other asset) values. If you beleive they will allow deflation to happen you are betting on a horse that is in the back of the pack chasing butterflies not the one racing to the finish line. It is what it is….[/quote]

I don’t think that it’s asset value per se. And true that politicians will do what it takes to get reelected.

Home values is a tricky business. Houses are the store of wealth for the middle-class and lower-middle class voters.

The upper-classes don’t really care about house values. They care more about financial markets.

Government intervention is all about GDP growth. Without some inflation, we cannot have economic growth. So policies will always be biased towards preventing deflation.

It will be interesting to watch those in Congress who believe that the government getting completely out of housing will create more economic growth and higher house values.

[briansd1]

[quote=sdrealtor] Americans love their homes and love to see them increase in value. When they dont, they blame the politicians. SO the politicians will continue doing whatever is necessary to protect home (and other asset) values. If you beleive they will allow deflation to happen you are betting on a horse that is in the back of the pack chasing butterflies not the one racing to the finish line. It is what it is….[/quote]

I don’t think that it’s asset value per se. And true that politicians will do what it takes to get reelected.

Home values is a tricky business. Houses are the store of wealth for the middle-class and lower-middle class voters.

The upper-classes don’t really care about house values. They care more about financial markets.

Government intervention is all about GDP growth. Without some inflation, we cannot have economic growth. So policies will always be biased towards preventing deflation.

It will be interesting to watch those in Congress who believe that the government getting completely out of housing will create more economic growth and higher house values.

[briansd1]

[quote=sdrealtor] Americans love their homes and love to see them increase in value. When they dont, they blame the politicians. SO the politicians will continue doing whatever is necessary to protect home (and other asset) values. If you beleive they will allow deflation to happen you are betting on a horse that is in the back of the pack chasing butterflies not the one racing to the finish line. It is what it is….[/quote]

I don’t think that it’s asset value per se. And true that politicians will do what it takes to get reelected.

Home values is a tricky business. Houses are the store of wealth for the middle-class and lower-middle class voters.

The upper-classes don’t really care about house values. They care more about financial markets.

Government intervention is all about GDP growth. Without some inflation, we cannot have economic growth. So policies will always be biased towards preventing deflation.

It will be interesting to watch those in Congress who believe that the government getting completely out of housing will create more economic growth and higher house values.

[partypup]

[quote=socrattt][quote=partypup]I warned you fools 2 years ago.

Got gold?[/quote]

Come on Partypup, we were all buying in unison. I was a huge proponent of silver more than 2 years ago and guess what, it’s outpaced gold at an astounding rate. That said, it may just be time to hit the sell button. That’s only if you’ve got some good investment ideas as the dollar certainly isn’t any form of an investment at this point.[/quote]

As I recall, most on this board were too fascinated with real estate, stocks and miscellaneous paper to really give serious attention to metals. So I don’t think we were all buying in unison 😉

And you are spot-on about silver. I had been split 75/25 gold/silver, but I diversified my holdings heavily towards silver about 18 mos ago and have not regretted that decision. Silver is much more volatile (even though the bigger gains are to be found there – up 110% in the past 52 weeks), and most simply do not have the stones to ride that coaster, which is why gold continues to be the safest “sure bet” for the average investor.

But I would not hit the “sell” button now, my friend. It’s about to get a lot worse. $150-200 oil will kill whatever is left of this economy and this faux/imagined/illusory “recovery”. The blinders will come off for everyone this year as they begin to realize that we are firmly ensconced in a depression that will not end anytime soon because the dollar is effectively worthless abroad now.

If your plan is to diversify out of metals and into food, however, that might not be a bad move. Food and water will be more valuable than gold or silver in the not-so-distant future.

But any other diversification at this point is unthinkable. Because ALL paper is going *poof*.

[partypup]

[quote=socrattt][quote=partypup]I warned you fools 2 years ago.

Got gold?[/quote]

Come on Partypup, we were all buying in unison. I was a huge proponent of silver more than 2 years ago and guess what, it’s outpaced gold at an astounding rate. That said, it may just be time to hit the sell button. That’s only if you’ve got some good investment ideas as the dollar certainly isn’t any form of an investment at this point.[/quote]

As I recall, most on this board were too fascinated with real estate, stocks and miscellaneous paper to really give serious attention to metals. So I don’t think we were all buying in unison 😉

And you are spot-on about silver. I had been split 75/25 gold/silver, but I diversified my holdings heavily towards silver about 18 mos ago and have not regretted that decision. Silver is much more volatile (even though the bigger gains are to be found there – up 110% in the past 52 weeks), and most simply do not have the stones to ride that coaster, which is why gold continues to be the safest “sure bet” for the average investor.

But I would not hit the “sell” button now, my friend. It’s about to get a lot worse. $150-200 oil will kill whatever is left of this economy and this faux/imagined/illusory “recovery”. The blinders will come off for everyone this year as they begin to realize that we are firmly ensconced in a depression that will not end anytime soon because the dollar is effectively worthless abroad now.

If your plan is to diversify out of metals and into food, however, that might not be a bad move. Food and water will be more valuable than gold or silver in the not-so-distant future.

But any other diversification at this point is unthinkable. Because ALL paper is going *poof*.

[partypup]

[quote=socrattt][quote=partypup]I warned you fools 2 years ago.

Got gold?[/quote]

Come on Partypup, we were all buying in unison. I was a huge proponent of silver more than 2 years ago and guess what, it’s outpaced gold at an astounding rate. That said, it may just be time to hit the sell button. That’s only if you’ve got some good investment ideas as the dollar certainly isn’t any form of an investment at this point.[/quote]

As I recall, most on this board were too fascinated with real estate, stocks and miscellaneous paper to really give serious attention to metals. So I don’t think we were all buying in unison 😉

And you are spot-on about silver. I had been split 75/25 gold/silver, but I diversified my holdings heavily towards silver about 18 mos ago and have not regretted that decision. Silver is much more volatile (even though the bigger gains are to be found there – up 110% in the past 52 weeks), and most simply do not have the stones to ride that coaster, which is why gold continues to be the safest “sure bet” for the average investor.

But I would not hit the “sell” button now, my friend. It’s about to get a lot worse. $150-200 oil will kill whatever is left of this economy and this faux/imagined/illusory “recovery”. The blinders will come off for everyone this year as they begin to realize that we are firmly ensconced in a depression that will not end anytime soon because the dollar is effectively worthless abroad now.

If your plan is to diversify out of metals and into food, however, that might not be a bad move. Food and water will be more valuable than gold or silver in the not-so-distant future.

But any other diversification at this point is unthinkable. Because ALL paper is going *poof*.

[partypup]

[quote=socrattt][quote=partypup]I warned you fools 2 years ago.

Got gold?[/quote]

Come on Partypup, we were all buying in unison. I was a huge proponent of silver more than 2 years ago and guess what, it’s outpaced gold at an astounding rate. That said, it may just be time to hit the sell button. That’s only if you’ve got some good investment ideas as the dollar certainly isn’t any form of an investment at this point.[/quote]

As I recall, most on this board were too fascinated with real estate, stocks and miscellaneous paper to really give serious attention to metals. So I don’t think we were all buying in unison 😉

And you are spot-on about silver. I had been split 75/25 gold/silver, but I diversified my holdings heavily towards silver about 18 mos ago and have not regretted that decision. Silver is much more volatile (even though the bigger gains are to be found there – up 110% in the past 52 weeks), and most simply do not have the stones to ride that coaster, which is why gold continues to be the safest “sure bet” for the average investor.

But I would not hit the “sell” button now, my friend. It’s about to get a lot worse. $150-200 oil will kill whatever is left of this economy and this faux/imagined/illusory “recovery”. The blinders will come off for everyone this year as they begin to realize that we are firmly ensconced in a depression that will not end anytime soon because the dollar is effectively worthless abroad now.

If your plan is to diversify out of metals and into food, however, that might not be a bad move. Food and water will be more valuable than gold or silver in the not-so-distant future.

But any other diversification at this point is unthinkable. Because ALL paper is going *poof*.

[partypup]

[quote=socrattt][quote=partypup]I warned you fools 2 years ago.

Got gold?[/quote]

Come on Partypup, we were all buying in unison. I was a huge proponent of silver more than 2 years ago and guess what, it’s outpaced gold at an astounding rate. That said, it may just be time to hit the sell button. That’s only if you’ve got some good investment ideas as the dollar certainly isn’t any form of an investment at this point.[/quote]

As I recall, most on this board were too fascinated with real estate, stocks and miscellaneous paper to really give serious attention to metals. So I don’t think we were all buying in unison 😉

And you are spot-on about silver. I had been split 75/25 gold/silver, but I diversified my holdings heavily towards silver about 18 mos ago and have not regretted that decision. Silver is much more volatile (even though the bigger gains are to be found there – up 110% in the past 52 weeks), and most simply do not have the stones to ride that coaster, which is why gold continues to be the safest “sure bet” for the average investor.

But I would not hit the “sell” button now, my friend. It’s about to get a lot worse. $150-200 oil will kill whatever is left of this economy and this faux/imagined/illusory “recovery”. The blinders will come off for everyone this year as they begin to realize that we are firmly ensconced in a depression that will not end anytime soon because the dollar is effectively worthless abroad now.

If your plan is to diversify out of metals and into food, however, that might not be a bad move. Food and water will be more valuable than gold or silver in the not-so-distant future.

But any other diversification at this point is unthinkable. Because ALL paper is going *poof*.

[sdrealtor]

“The upper-classes don’t really care about house values. They care more about financial markets.”

Sorry dead wrong on that. Tell that to all the upside homewoners in RSF.

[sdrealtor]

“The upper-classes don’t really care about house values. They care more about financial markets.”

Sorry dead wrong on that. Tell that to all the upside homewoners in RSF.

[sdrealtor]

“The upper-classes don’t really care about house values. They care more about financial markets.”

Sorry dead wrong on that. Tell that to all the upside homewoners in RSF.

[sdrealtor]

“The upper-classes don’t really care about house values. They care more about financial markets.”

Sorry dead wrong on that. Tell that to all the upside homewoners in RSF.

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