On Topic: Housing finance system overhaul

[Diego Mamani]

And now this:

http://finance.yahoo.com/news/Era-of-superlow-mortgage-apf-971054509.html?x=0&sec=topStories&pos=7&asset=&ccode#mwpphu-container

The mainstream media is reporting that mortgage rates are 100 basis points (bps) higher than some months ago. Our friend SD-R alerted us yesterday:

http://piggington.com/tnx_up_100bps

The Yahoo Finance article mistakenly attributes the increase to a stronger economy. IMHO, rates are up due to inflation expectations. I’m not talking Weimar-style hyperinflation, but the possibility of 1970s-style inflation approaching or even surpassing 10%.

Of course, I’m not talking about next week or the next two quarters. Rather, I mean to say that inflation over the next 10 years will be substantially higher than over the previous 10. Whatever you do, don’t keep your assets in cash.

[ILoveRegulation]

If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)

[ILoveRegulation]

If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)

[ILoveRegulation]

If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)

[ILoveRegulation]

If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)

[ILoveRegulation]

If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)

[an]

[quote=ILoveRegulation]If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)[/quote]
Care to share with us where you can get an iPhone for $300? I’d like to buy a few hundred and resale for a healthy profit. Amazon is selling it for $691 right now: http://www.amazon.com/Apple-iPhone-Black-Smartphone-16GB/dp/B0041E16RC/ref=sr_1_1?ie=UTF8&qid=1297399497&sr=8-1

[an]

[quote=ILoveRegulation]If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)[/quote]
Care to share with us where you can get an iPhone for $300? I’d like to buy a few hundred and resale for a healthy profit. Amazon is selling it for $691 right now: http://www.amazon.com/Apple-iPhone-Black-Smartphone-16GB/dp/B0041E16RC/ref=sr_1_1?ie=UTF8&qid=1297399497&sr=8-1

[an]

[quote=ILoveRegulation]If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)[/quote]
Care to share with us where you can get an iPhone for $300? I’d like to buy a few hundred and resale for a healthy profit. Amazon is selling it for $691 right now: http://www.amazon.com/Apple-iPhone-Black-Smartphone-16GB/dp/B0041E16RC/ref=sr_1_1?ie=UTF8&qid=1297399497&sr=8-1

[an]

[quote=ILoveRegulation]If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)[/quote]
Care to share with us where you can get an iPhone for $300? I’d like to buy a few hundred and resale for a healthy profit. Amazon is selling it for $691 right now: http://www.amazon.com/Apple-iPhone-Black-Smartphone-16GB/dp/B0041E16RC/ref=sr_1_1?ie=UTF8&qid=1297399497&sr=8-1

[an]

[quote=ILoveRegulation]If the housing market is going to collapse if interest rates go up, what is going to cause inflation? Wasn’t the ‘problem’ in the 1970’s wage inflation? What is going to cause wage inflation today?

I think we are more likely to see deflation. Governments, both local and the United States Government are cutting back. Businesses have found that they can make more money than ever by not hiring and getting more out of the staff they have.

iPhones were $600 in 2007 and you can buy them new today for less than $300. Lending standards are getting tighter.

I can see there being inflation in food and energy, but the cost of most goods is deflating (cars, houses, electronics, furniture, etc.)[/quote]
Care to share with us where you can get an iPhone for $300? I’d like to buy a few hundred and resale for a healthy profit. Amazon is selling it for $691 right now: http://www.amazon.com/Apple-iPhone-Black-Smartphone-16GB/dp/B0041E16RC/ref=sr_1_1?ie=UTF8&qid=1297399497&sr=8-1

[ILoveRegulation]

$300 at Best Buy with two-year contract. Can’t post a link due to the spam filter.

[ILoveRegulation]

$300 at Best Buy with two-year contract. Can’t post a link due to the spam filter.

[ILoveRegulation]

$300 at Best Buy with two-year contract. Can’t post a link due to the spam filter.

[ILoveRegulation]

$300 at Best Buy with two-year contract. Can’t post a link due to the spam filter.

[Author]

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