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CA renter.
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August 4, 2011 at 6:17 AM #716048August 5, 2011 at 4:09 AM #715107
CA renter
Participant[quote=Nor-LA-SD-GUY2]Just getting back to the normal number of RE transactions would put us very close to 6% unemployment in SoCal I believe.
The drastic cut back in building over the last 5 years has far exceeded the overbuilding from 2001 to 2006 . It’s just that the economy is broken so household formation has been in a drastic crimp as well.[/quote]According to the NAHB, housing’s contribution to GDP (including housing fixed investment and housing services) was 18.5% in 2005, and 14.9% in Q1 2011. So, while it’s certainly dropped, it’s not the end of the world.
Some would argue that allowing housing prices to fall **and washing out all that debt** is the #1 way to get the economy going again. The economy would actually ramp up because families would have **affordable housing,** and less debt to service, allowing them to save and spend their money in other, more productive ways.
http://www.nahb.org/generic.aspx?genericContentID=66226
We’ll never be able to solve our problems for as long as we’re incorrectly defining them. Our problems will not be resolved until we address the oursourcing of our jobs. That is the #1 problem with our economy, and there are too few politicians who have the guts to piss off their most powerful masters by speaking the truth.
August 5, 2011 at 4:09 AM #715198Participant[quote=Nor-LA-SD-GUY2]Just getting back to the normal number of RE transactions would put us very close to 6% unemployment in SoCal I believe.
The drastic cut back in building over the last 5 years has far exceeded the overbuilding from 2001 to 2006 . It’s just that the economy is broken so household formation has been in a drastic crimp as well.[/quote]According to the NAHB, housing’s contribution to GDP (including housing fixed investment and housing services) was 18.5% in 2005, and 14.9% in Q1 2011. So, while it’s certainly dropped, it’s not the end of the world.
Some would argue that allowing housing prices to fall **and washing out all that debt** is the #1 way to get the economy going again. The economy would actually ramp up because families would have **affordable housing,** and less debt to service, allowing them to save and spend their money in other, more productive ways.
http://www.nahb.org/generic.aspx?genericContentID=66226
We’ll never be able to solve our problems for as long as we’re incorrectly defining them. Our problems will not be resolved until we address the oursourcing of our jobs. That is the #1 problem with our economy, and there are too few politicians who have the guts to piss off their most powerful masters by speaking the truth.
August 5, 2011 at 4:09 AM #715800Participant[quote=Nor-LA-SD-GUY2]Just getting back to the normal number of RE transactions would put us very close to 6% unemployment in SoCal I believe.
The drastic cut back in building over the last 5 years has far exceeded the overbuilding from 2001 to 2006 . It’s just that the economy is broken so household formation has been in a drastic crimp as well.[/quote]According to the NAHB, housing’s contribution to GDP (including housing fixed investment and housing services) was 18.5% in 2005, and 14.9% in Q1 2011. So, while it’s certainly dropped, it’s not the end of the world.
Some would argue that allowing housing prices to fall **and washing out all that debt** is the #1 way to get the economy going again. The economy would actually ramp up because families would have **affordable housing,** and less debt to service, allowing them to save and spend their money in other, more productive ways.
http://www.nahb.org/generic.aspx?genericContentID=66226
We’ll never be able to solve our problems for as long as we’re incorrectly defining them. Our problems will not be resolved until we address the oursourcing of our jobs. That is the #1 problem with our economy, and there are too few politicians who have the guts to piss off their most powerful masters by speaking the truth.
August 5, 2011 at 4:09 AM #715952Participant[quote=Nor-LA-SD-GUY2]Just getting back to the normal number of RE transactions would put us very close to 6% unemployment in SoCal I believe.
The drastic cut back in building over the last 5 years has far exceeded the overbuilding from 2001 to 2006 . It’s just that the economy is broken so household formation has been in a drastic crimp as well.[/quote]According to the NAHB, housing’s contribution to GDP (including housing fixed investment and housing services) was 18.5% in 2005, and 14.9% in Q1 2011. So, while it’s certainly dropped, it’s not the end of the world.
Some would argue that allowing housing prices to fall **and washing out all that debt** is the #1 way to get the economy going again. The economy would actually ramp up because families would have **affordable housing,** and less debt to service, allowing them to save and spend their money in other, more productive ways.
http://www.nahb.org/generic.aspx?genericContentID=66226
We’ll never be able to solve our problems for as long as we’re incorrectly defining them. Our problems will not be resolved until we address the oursourcing of our jobs. That is the #1 problem with our economy, and there are too few politicians who have the guts to piss off their most powerful masters by speaking the truth.
August 5, 2011 at 4:09 AM #716314Participant[quote=Nor-LA-SD-GUY2]Just getting back to the normal number of RE transactions would put us very close to 6% unemployment in SoCal I believe.
The drastic cut back in building over the last 5 years has far exceeded the overbuilding from 2001 to 2006 . It’s just that the economy is broken so household formation has been in a drastic crimp as well.[/quote]According to the NAHB, housing’s contribution to GDP (including housing fixed investment and housing services) was 18.5% in 2005, and 14.9% in Q1 2011. So, while it’s certainly dropped, it’s not the end of the world.
Some would argue that allowing housing prices to fall **and washing out all that debt** is the #1 way to get the economy going again. The economy would actually ramp up because families would have **affordable housing,** and less debt to service, allowing them to save and spend their money in other, more productive ways.
http://www.nahb.org/generic.aspx?genericContentID=66226
We’ll never be able to solve our problems for as long as we’re incorrectly defining them. Our problems will not be resolved until we address the oursourcing of our jobs. That is the #1 problem with our economy, and there are too few politicians who have the guts to piss off their most powerful masters by speaking the truth.
August 5, 2011 at 4:19 AM #715112Participant[quote=sdduuuude]Interesting article from gregor.us, who seems like one of the brighter bloggers. Always has an interesting perspective:
http://gregor.us/policy/obsolete-expertise-and-the-us-economys-energy-problem/
The Great Recession has offered the perfect occasion to witness the phenomenon, a financial crisis which specifically kicked off amidst 150 dollar oil in 2008. Instead of advising the President that the country faced debt-deflation, with a nasty overlay of high commodity costs, the White House economic team has drawn from the post-war playbook which holds that if you stimulate the economy generally then the system will magically reorganize itself. Well, that hasn’t happened and it’s not going to happen.[/quote]
Which is why QE3 will only make matters worse.
They are trying to solve a liquidity crisis, when what we have is a solvency crisis. There is TOO MUCH MONEY sloshing around the system, but it’s in the hands of those at the top…those who are already wealthy, and looking to get wealthier. They are competing on the demand side with true end users of the assets and commodities that they are “investing” in, because they fear inflation. This is even worse than what would have happened if the central banks had refrained from pumping so much money, rather indiscriminately, into the financial sector.
August 5, 2011 at 4:19 AM #715203Participant[quote=sdduuuude]Interesting article from gregor.us, who seems like one of the brighter bloggers. Always has an interesting perspective:
http://gregor.us/policy/obsolete-expertise-and-the-us-economys-energy-problem/
The Great Recession has offered the perfect occasion to witness the phenomenon, a financial crisis which specifically kicked off amidst 150 dollar oil in 2008. Instead of advising the President that the country faced debt-deflation, with a nasty overlay of high commodity costs, the White House economic team has drawn from the post-war playbook which holds that if you stimulate the economy generally then the system will magically reorganize itself. Well, that hasn’t happened and it’s not going to happen.[/quote]
Which is why QE3 will only make matters worse.
They are trying to solve a liquidity crisis, when what we have is a solvency crisis. There is TOO MUCH MONEY sloshing around the system, but it’s in the hands of those at the top…those who are already wealthy, and looking to get wealthier. They are competing on the demand side with true end users of the assets and commodities that they are “investing” in, because they fear inflation. This is even worse than what would have happened if the central banks had refrained from pumping so much money, rather indiscriminately, into the financial sector.
August 5, 2011 at 4:19 AM #715805Participant[quote=sdduuuude]Interesting article from gregor.us, who seems like one of the brighter bloggers. Always has an interesting perspective:
http://gregor.us/policy/obsolete-expertise-and-the-us-economys-energy-problem/
The Great Recession has offered the perfect occasion to witness the phenomenon, a financial crisis which specifically kicked off amidst 150 dollar oil in 2008. Instead of advising the President that the country faced debt-deflation, with a nasty overlay of high commodity costs, the White House economic team has drawn from the post-war playbook which holds that if you stimulate the economy generally then the system will magically reorganize itself. Well, that hasn’t happened and it’s not going to happen.[/quote]
Which is why QE3 will only make matters worse.
They are trying to solve a liquidity crisis, when what we have is a solvency crisis. There is TOO MUCH MONEY sloshing around the system, but it’s in the hands of those at the top…those who are already wealthy, and looking to get wealthier. They are competing on the demand side with true end users of the assets and commodities that they are “investing” in, because they fear inflation. This is even worse than what would have happened if the central banks had refrained from pumping so much money, rather indiscriminately, into the financial sector.
August 5, 2011 at 4:19 AM #715957Participant[quote=sdduuuude]Interesting article from gregor.us, who seems like one of the brighter bloggers. Always has an interesting perspective:
http://gregor.us/policy/obsolete-expertise-and-the-us-economys-energy-problem/
The Great Recession has offered the perfect occasion to witness the phenomenon, a financial crisis which specifically kicked off amidst 150 dollar oil in 2008. Instead of advising the President that the country faced debt-deflation, with a nasty overlay of high commodity costs, the White House economic team has drawn from the post-war playbook which holds that if you stimulate the economy generally then the system will magically reorganize itself. Well, that hasn’t happened and it’s not going to happen.[/quote]
Which is why QE3 will only make matters worse.
They are trying to solve a liquidity crisis, when what we have is a solvency crisis. There is TOO MUCH MONEY sloshing around the system, but it’s in the hands of those at the top…those who are already wealthy, and looking to get wealthier. They are competing on the demand side with true end users of the assets and commodities that they are “investing” in, because they fear inflation. This is even worse than what would have happened if the central banks had refrained from pumping so much money, rather indiscriminately, into the financial sector.
August 5, 2011 at 4:19 AM #716319Participant[quote=sdduuuude]Interesting article from gregor.us, who seems like one of the brighter bloggers. Always has an interesting perspective:
http://gregor.us/policy/obsolete-expertise-and-the-us-economys-energy-problem/
The Great Recession has offered the perfect occasion to witness the phenomenon, a financial crisis which specifically kicked off amidst 150 dollar oil in 2008. Instead of advising the President that the country faced debt-deflation, with a nasty overlay of high commodity costs, the White House economic team has drawn from the post-war playbook which holds that if you stimulate the economy generally then the system will magically reorganize itself. Well, that hasn’t happened and it’s not going to happen.[/quote]
Which is why QE3 will only make matters worse.
They are trying to solve a liquidity crisis, when what we have is a solvency crisis. There is TOO MUCH MONEY sloshing around the system, but it’s in the hands of those at the top…those who are already wealthy, and looking to get wealthier. They are competing on the demand side with true end users of the assets and commodities that they are “investing” in, because they fear inflation. This is even worse than what would have happened if the central banks had refrained from pumping so much money, rather indiscriminately, into the financial sector.
August 5, 2011 at 5:53 AM #715122Arraya
Participant[quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.
August 5, 2011 at 5:53 AM #715213Participant[quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.
August 5, 2011 at 5:53 AM #715815Participant[quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.
August 5, 2011 at 5:53 AM #715967Participant[quote=CA renter]
Which is why QE3 will only make matters worse.[/quote]
Well, it will make some things worse. It certainly won’t fix long term structural problems that absolutely need to be addressed. Though, it does stave off a deflationary collapse. Which, uncontrolled, is the sum of all fears for TPTB – because it would be revolutionary.
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