ot. america is pissed off.

[CA renter]

[quote=harvey][quote=CA renter]
http://www.investopedia.com/terms/s/sticky-wage-theory.asp%5B/quote%5D

Right, we absolutely need to base economic policy on an unproven theory you found on the internet. Did you notice that there isn’t a single historical example in that article?

Since this is a real-estate board, here’s a question about your deflation solution:

What happens when millions of homeowners see the value of their home decline below the outstanding balance on their mortgage?

What happens when property tax revenue decreases?

Oh wait…I just watched this show…[/quote]

1.) Investopedia doesn’t write articles. It’s an encyclopedic source of information that is geared toward economic terms, definitions and explanations.

2.) Once again, you might indulge in a little bit of “finding information on the internet” yourself before embarrassing yourself when you post comments that show a clear lack of understanding about a particular subject.

It’s odd that someone who claims to have advanced degree(s) from top universities wouldn’t know how to research something, even if that means doing a cursory search on the internet.

So, here’s a new bit of information for you, Mr. Finance Expert:

“Downward nominal wage rigidities, wage growth, and unemployment

Downward nominal wage rigidities are a well-documented feature of the U.S. labor market (see, for example, Akerlof, Dickens, and Perry 1996 and Card and Hyslop 1996). With that in mind, Daly and Hobijn (2014) introduce a model to illustrate how such rigidities can affect the relationship between unemployment and wage growth. Downward rigidities prevent businesses from reducing wages as much as they would like following a negative shock to the economy.”

Why Is Wage Growth So Slow?

[FYI, all economic theories are theories, and many of these theories have never been proven in real life. That being said, the “stickiness of wages” during downturns is a well-known and well-documented occurrence. I’ll leave it up to you to read the original studies quoted here…or, does the Federal Reserve Bank not count as an acceptable source of information for you, either?]

3.) What happens when the value of people’s homes drops below what they owe? In a normal market where mortgages were properly underwritten, and where people put 20% down on a property, not much happens at all. The only thing that changes is the number of short sales (they obviously increase), where people sell their home for less than they owe, for those who need to sell their homes during the downturn.

Most people who purchase a home with the expectation of living in it (as opposed to speculating on its value) will not change their behavior much at all if they don’t intend to sell it.

The reason that so many people walked away from their homes after the bubble popped was because they had stretched their finances so thinly, so they were relying on non-stop appreciation which enabled them to use their homes as low-interest-rate credit cards by cash-out refinancing and HELOC’ing their homes every year. They would then use that money to pay for basic necessities, including their mortgage payments.

No appreciation >>> no increasing their credit limits >>> no mortgage payments. It was easy to forecast what was going to happen, even when all the “experts” were saying that people wouldn’t walk away from their homes and mortgage obligations.

[Anonymous]

No answer to my property tax question?

Homes are losing values, millions of homeowners are seeing their largest investment lose money.

Tax revenues are decreasing.

Public employee wages don’t change – where does the money come from?

[quote]Most people who purchase a home with the expectation of living in it (as opposed to speculating on its value) will not change their behavior much at all if they don’t intend to sell it.[/quote]

What about the military family getting a transfer that has to sell their home at a reduced value? Are they SOL?

And if your aren’t a homeowner and live in an apartment. Why would anyone build an apartment building if the value (and rents) are just going to decrease over time?

What happens to pension funds during a period of deflation? How do they meet their guaranteed rate of return?

Lots of questions to answer before your thesis becomes credible…

[carlsbadworker]

[quote=AN]Hope and Change 12 years in a row. Seems like it’s a winning message LoL.[/quote]

The ironic part is that the change Trump supporters seek is for things to remain the same as “good old days”. Make America Great again = We Want No Change, even while the whole world is changing around them.

[no_such_reality]

“good old days” Trump supporter.

[quote]I’m a Muslim, a woman and an immigrant. I voted for Trump.[/quote]

[FlyerInHi]

[quote=carlsbadworker][quote=AN]Hope and Change 12 years in a row. Seems like it’s a winning message LoL.[/quote]

The ironic part is that the change Trump supporters seek is for things to remain the same as “good old days”. Make America Great again = We Want No Change, even while the whole world is changing around them.[/quote]

There is such thing as rational hope. The poor people who voted for Obama and Hillary looked at the policy proposals and thought that, were the policies to come to fruition, their lives would be better. Obama was obstructed so he could only bend the arc of change so much.

Trump supporters are hoping against hope that America can go back in time. But no politician can turn back the clock.

When Republicans use “hopey changey” to mock they mean “we have the power, and we will obstruct, so your boy ain’t gonna change shit”.

It will be fiun to throw “hopey changey” in Trump supporters faces when the demographics are insurmountable for them. The demographics in medium to large cities are already overwhelming. The electoral college and districting just rigged the elections for republicans.

And when the forces of globalization intensify, we can ask “how ‘re ‘elm bootstraps working for ya?”

[an]

[quote=carlsbadworker]The ironic part is that the change Trump supporters seek is for things to remain the same as “good old days”. Make America Great again = We Want No Change, even while the whole world is changing around them.[/quote]They don’t seek things to remain the same. They seek for things to change so that they can live a middle class life style like their parents could. The world changed over the last 30 years to globalism. Today, it seems like the 1st world countries are having an undercurrent to change that back. Hence, Brexit, Trump, etc. I think you’re wrong that they don’t see or are aware of the world changing around them. I think they fully are aware of it, which is why they rose up and say the change is the wrong change for them. Not all changes are good for all people. Why else do you think we have Brexit and Trump?

[an]

[quote=FlyerInHi]The electoral college and districting just rigged the elections for republicans. [/quote]LoL, now the hardcore democrats are calling it rigged. Didn’t the Democrats told Trump and his supporters who were saying the election is rigged to stop being a cry baby and a sore loser? Only losers say the system is rigged when they lose.

[FlyerInHi]

[quote=AN][quote=FlyerInHi]The electoral college and districting just rigged the elections for republicans. [/quote]LoL, now the hardcore democrats are calling it rigged. Didn’t the Democrats told Trump and his supporters who were saying the election is rigged to stop being a cry baby and a sore loser? Only losers say the system is rigged when they lose.[/quote]

It’s only rhetorically “rigged” (a continuation of the theme started by Trump) in the sense that the bias is built-in. The rules were followed so the results stand.

It’s also objectively “rigged” in that the popular vote doesn’t count.

See, we elitists are more sophisticated in thinking.

[NotCranky]

Seems like the anger and general hysteria is largely coming from people who were looking for a Hillary win to validate their sexual orientation and sexism from the shrill and greedy feminists . You can’t run a country on gender issues and sexual identification. You can’t get a bigger affront to female power mare than an old man with a hot model half his age for a wife in the white house. It does look ridiculous, but suck it up ladies. It doesn’t mean we are going back to the stone age. A good female would have won. It just means he gave up trying to find equality in a personal relationship with women and took candy that he could afford instead. Given that men are behind in the battle of the sexes, that’s not really all that dumb.

As bad as he may have been, Trump did not exceed the democrats on race baiting. Democrats are masters of it. The exaggeration of Trump’s alleged racism is in large part responsible for the demonstrations too.

[FlyerInHi]

I don’t see how feminists are greedy.
I actually like and respect real feminists and lesbians because they are self sufficient and independent. They earn their own money, and use science to make their own babies, if necessary.

What bothers me is straight women who want their cake and eat it too. Women who want equality but also want men to take care of them. Doesn’t work that way.

[Anonymous]

[quote]I’m a Muslim, a woman and an immigrant. I voted for Trump.[/quote]

And her reason?

But I am a single mother who can’t afford health insurance under Obamacare. The president’s mortgage-loan modification program, “HOPE NOW,” didn’t help me. Tuesday, I drove into Virginia from my hometown of Morgantown, W.Va., where I see rural America and ordinary Americans, like me, still struggling to make ends meet, after eight years of the Obama administration.

She has no clue how Trump is going to help her pay for healthcare or her mortgage. And neither does Trump.

[Anonymous]

[quote=AN]LoL, now the hardcore democrats are calling it rigged. [/quote]

No they aren’t.

No one in any significant leadership role of the Democratic party is claiming the presidential election was rigged.

The only significant person in history to ever claim an American presidential election was “rigged” was Donald Trump. It wasn’t an offhand comment or open to interpretation, Trump emphasized his claims multiple times in very public venues.

It was pathetic and irresponsible when he said it, and the fact that he won the election doesn’t change that.

Even Pence knew it was a very wrong thing to say.

He actually said that he would not accept the results of the election if he lost. And so many people, including you, don’t understand how fucking dangerous that is.

He’ll probably be claiming it’s rigged again in four years – since he’s been validated and emboldened by support like yours. And it will be far more dangerous when a sitting president says he’ll refuse to accept the results of an election.

[an]

[quote=FlyerInHi][quote=AN][quote=FlyerInHi]The electoral college and districting just rigged the elections for republicans. [/quote]LoL, now the hardcore democrats are calling it rigged. Didn’t the Democrats told Trump and his supporters who were saying the election is rigged to stop being a cry baby and a sore loser? Only losers say the system is rigged when they lose.[/quote]

It’s only rhetorically “rigged” (a continuation of the theme started by Trump) in the sense that the bias is built-in. The rules were followed so the results stand.

It’s also objectively “rigged” in that the popular vote doesn’t count.

See, we elitists are more sophisticated in thinking.[/quote]LoL, keep telling yourself that if it helps you sleep at night. We’ve always been a Constitutional Republic, not a Democracy. So, it’s not rigged, since it was set up that way.

[mixxalot]

Nah the protestors are Soros funded leftist commie scumbags. Almost everyone I talk with voted Trump.

[an]

LoL

[Author]

Posts