Shall we buy or never in San Diego or wait for more depreciation?

[an]

[quote=Arraya]If this was a movie it would be titled “desperately seeking inflation” I don’t think inflation can easily be metered out when fighting the strongest deflationary pressures in history. If your paying attention they are trying like hell to inflate.[/quote]
I tend to side with the rule maker in the long run. If they want inflation, they can create inflation. They seem to be trying to create inflation at a manageable rate. But if they want, they can start printing quadrillion of $ and give out tax credit like there’s no tomorrow. That would be more than enough to create hyperinflation. In another word, they’re not trying very hard to create inflation. They could do much much much more to create inflation.

[Nor-LA-SD-guy]

“give out tax credit like there’s no tomorrow”

That may come if we get a double dip going,

I think it would be way too obvious right now, they need inflation but they have to act like it was accidental. IMO

Just like the housing bubble (it was the only way to recover from the Tech bubble and take peoples mind off the wars somewhat). Although I can’t see how anyone could possibly think they did not know what they were doing.

[Nor-LA-SD-guy]

“give out tax credit like there’s no tomorrow”

That may come if we get a double dip going,

I think it would be way too obvious right now, they need inflation but they have to act like it was accidental. IMO

Just like the housing bubble (it was the only way to recover from the Tech bubble and take peoples mind off the wars somewhat). Although I can’t see how anyone could possibly think they did not know what they were doing.

[Nor-LA-SD-guy]

“give out tax credit like there’s no tomorrow”

That may come if we get a double dip going,

I think it would be way too obvious right now, they need inflation but they have to act like it was accidental. IMO

Just like the housing bubble (it was the only way to recover from the Tech bubble and take peoples mind off the wars somewhat). Although I can’t see how anyone could possibly think they did not know what they were doing.

[Nor-LA-SD-guy]

“give out tax credit like there’s no tomorrow”

That may come if we get a double dip going,

I think it would be way too obvious right now, they need inflation but they have to act like it was accidental. IMO

Just like the housing bubble (it was the only way to recover from the Tech bubble and take peoples mind off the wars somewhat). Although I can’t see how anyone could possibly think they did not know what they were doing.

[Nor-LA-SD-guy]

“give out tax credit like there’s no tomorrow”

That may come if we get a double dip going,

I think it would be way too obvious right now, they need inflation but they have to act like it was accidental. IMO

Just like the housing bubble (it was the only way to recover from the Tech bubble and take peoples mind off the wars somewhat). Although I can’t see how anyone could possibly think they did not know what they were doing.

[briansd1]

[quote=AN]But if they want, they can start printing quadrillion of $ and give out tax credit like there’s no tomorrow. That would be more than enough to create hyperinflation. In another word, they’re not trying very hard to create inflation. They could do much much much more to create inflation.[/quote]

If you look at Zimbabwe, that’s exactly what they did. They wiped out all the debts (the one denominated in the local currency) and destroyed the currency.

If we inflate ourselves out of debt, we also destroy our banks and currency. That would be very bad. We are Masters Of The Universe thanks to Wall Street and thanks to our military.

[briansd1]

[quote=AN]But if they want, they can start printing quadrillion of $ and give out tax credit like there’s no tomorrow. That would be more than enough to create hyperinflation. In another word, they’re not trying very hard to create inflation. They could do much much much more to create inflation.[/quote]

If you look at Zimbabwe, that’s exactly what they did. They wiped out all the debts (the one denominated in the local currency) and destroyed the currency.

If we inflate ourselves out of debt, we also destroy our banks and currency. That would be very bad. We are Masters Of The Universe thanks to Wall Street and thanks to our military.

[briansd1]

[quote=AN]But if they want, they can start printing quadrillion of $ and give out tax credit like there’s no tomorrow. That would be more than enough to create hyperinflation. In another word, they’re not trying very hard to create inflation. They could do much much much more to create inflation.[/quote]

If you look at Zimbabwe, that’s exactly what they did. They wiped out all the debts (the one denominated in the local currency) and destroyed the currency.

If we inflate ourselves out of debt, we also destroy our banks and currency. That would be very bad. We are Masters Of The Universe thanks to Wall Street and thanks to our military.

[briansd1]

[quote=AN]But if they want, they can start printing quadrillion of $ and give out tax credit like there’s no tomorrow. That would be more than enough to create hyperinflation. In another word, they’re not trying very hard to create inflation. They could do much much much more to create inflation.[/quote]

If you look at Zimbabwe, that’s exactly what they did. They wiped out all the debts (the one denominated in the local currency) and destroyed the currency.

If we inflate ourselves out of debt, we also destroy our banks and currency. That would be very bad. We are Masters Of The Universe thanks to Wall Street and thanks to our military.

[briansd1]

[quote=AN]But if they want, they can start printing quadrillion of $ and give out tax credit like there’s no tomorrow. That would be more than enough to create hyperinflation. In another word, they’re not trying very hard to create inflation. They could do much much much more to create inflation.[/quote]

If you look at Zimbabwe, that’s exactly what they did. They wiped out all the debts (the one denominated in the local currency) and destroyed the currency.

If we inflate ourselves out of debt, we also destroy our banks and currency. That would be very bad. We are Masters Of The Universe thanks to Wall Street and thanks to our military.

[joestool]

[quote=AN][quote=patb]
obviously the OP is smoking crack.

California has a 50% state budget deficit.

California has a couple million surplus dwelling units.

So what’s the thing that’s going to drive property values?[/quote]
Inflation?[/quote]
Buying a house as a hedge against inflation incorrectly correlates money supply inflation with house price inflation. They are not the same.

It also assumes, if you take on mortgage debt to buy said house, you benefit by paying back the debt in devalued dollars. This is only true insofar as your ability to pay the debt remains constant in real terms.

In other words, if your salary, or pool of perspective buyer’s salaries don’t go up commensurately when it takes $30 FRN’s to buy a cheeseburger — and gas, food, electricity, water, etc. all costing more FRN’s — there’s even less FRN’s left over to pay that “devalued” mortgage.

Good luck with that plan.

Yeah, first thing I’m going to do when the value of all salary and savings are wiped out is go out and buy me a big-ass house.

If you actually believe your ill-liquid, non-portable, non-fungible, stucco crapbox with a high cost of carry (maintenance, insurance, mortgage, taxes, fees, etc.) with a big tax target bullseye painted on its side is a store of real value inversely to a currency devaluation — you really need to get over yourself and your delusional “home value”.

[joestool]

[quote=AN][quote=patb]
obviously the OP is smoking crack.

California has a 50% state budget deficit.

California has a couple million surplus dwelling units.

So what’s the thing that’s going to drive property values?[/quote]
Inflation?[/quote]
Buying a house as a hedge against inflation incorrectly correlates money supply inflation with house price inflation. They are not the same.

It also assumes, if you take on mortgage debt to buy said house, you benefit by paying back the debt in devalued dollars. This is only true insofar as your ability to pay the debt remains constant in real terms.

In other words, if your salary, or pool of perspective buyer’s salaries don’t go up commensurately when it takes $30 FRN’s to buy a cheeseburger — and gas, food, electricity, water, etc. all costing more FRN’s — there’s even less FRN’s left over to pay that “devalued” mortgage.

Good luck with that plan.

Yeah, first thing I’m going to do when the value of all salary and savings are wiped out is go out and buy me a big-ass house.

If you actually believe your ill-liquid, non-portable, non-fungible, stucco crapbox with a high cost of carry (maintenance, insurance, mortgage, taxes, fees, etc.) with a big tax target bullseye painted on its side is a store of real value inversely to a currency devaluation — you really need to get over yourself and your delusional “home value”.

[joestool]

[quote=AN][quote=patb]
obviously the OP is smoking crack.

California has a 50% state budget deficit.

California has a couple million surplus dwelling units.

So what’s the thing that’s going to drive property values?[/quote]
Inflation?[/quote]
Buying a house as a hedge against inflation incorrectly correlates money supply inflation with house price inflation. They are not the same.

It also assumes, if you take on mortgage debt to buy said house, you benefit by paying back the debt in devalued dollars. This is only true insofar as your ability to pay the debt remains constant in real terms.

In other words, if your salary, or pool of perspective buyer’s salaries don’t go up commensurately when it takes $30 FRN’s to buy a cheeseburger — and gas, food, electricity, water, etc. all costing more FRN’s — there’s even less FRN’s left over to pay that “devalued” mortgage.

Good luck with that plan.

Yeah, first thing I’m going to do when the value of all salary and savings are wiped out is go out and buy me a big-ass house.

If you actually believe your ill-liquid, non-portable, non-fungible, stucco crapbox with a high cost of carry (maintenance, insurance, mortgage, taxes, fees, etc.) with a big tax target bullseye painted on its side is a store of real value inversely to a currency devaluation — you really need to get over yourself and your delusional “home value”.

[joestool]

[quote=AN][quote=patb]
obviously the OP is smoking crack.

California has a 50% state budget deficit.

California has a couple million surplus dwelling units.

So what’s the thing that’s going to drive property values?[/quote]
Inflation?[/quote]
Buying a house as a hedge against inflation incorrectly correlates money supply inflation with house price inflation. They are not the same.

It also assumes, if you take on mortgage debt to buy said house, you benefit by paying back the debt in devalued dollars. This is only true insofar as your ability to pay the debt remains constant in real terms.

In other words, if your salary, or pool of perspective buyer’s salaries don’t go up commensurately when it takes $30 FRN’s to buy a cheeseburger — and gas, food, electricity, water, etc. all costing more FRN’s — there’s even less FRN’s left over to pay that “devalued” mortgage.

Good luck with that plan.

Yeah, first thing I’m going to do when the value of all salary and savings are wiped out is go out and buy me a big-ass house.

If you actually believe your ill-liquid, non-portable, non-fungible, stucco crapbox with a high cost of carry (maintenance, insurance, mortgage, taxes, fees, etc.) with a big tax target bullseye painted on its side is a store of real value inversely to a currency devaluation — you really need to get over yourself and your delusional “home value”.

[Author]

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