- This topic has 245 replies, 20 voices, and was last updated 16 years, 8 months ago by
equalizer.
-
AuthorPosts
-
March 13, 2008 at 3:45 PM #169349March 13, 2008 at 3:49 PM #168918
Eugene
ParticipantForget the dollar when you want to value a house. Use something real and concrete, like oil or gold.
Houses are immovable objects and they should be valued with respect to local incomes. More importantly, LAND is immovable and it constitutes the bulk of house’s value. If you could somehow build houses and land in China and bring them to the U.S. for cheap, your reasoning would have been solid.
They had the presses printing money 24-7, and they have “inflated” their way out of the bubble.
Popular but false sentiment. There has been very little money-printing since 2005.
countless savers are being robbed of the value of their life savings
Who’s being robbed? I’m not being robbed. Most of my money is in things like FXE. Most Americans are not being robbed, either. In 2000, 7 out of 10 American households had less than $25k of wealth, including their cars and 401k accounts. They have nothing to lose but their chains.
March 13, 2008 at 3:49 PM #169246ParticipantForget the dollar when you want to value a house. Use something real and concrete, like oil or gold.
Houses are immovable objects and they should be valued with respect to local incomes. More importantly, LAND is immovable and it constitutes the bulk of house’s value. If you could somehow build houses and land in China and bring them to the U.S. for cheap, your reasoning would have been solid.
They had the presses printing money 24-7, and they have “inflated” their way out of the bubble.
Popular but false sentiment. There has been very little money-printing since 2005.
countless savers are being robbed of the value of their life savings
Who’s being robbed? I’m not being robbed. Most of my money is in things like FXE. Most Americans are not being robbed, either. In 2000, 7 out of 10 American households had less than $25k of wealth, including their cars and 401k accounts. They have nothing to lose but their chains.
March 13, 2008 at 3:49 PM #169253ParticipantForget the dollar when you want to value a house. Use something real and concrete, like oil or gold.
Houses are immovable objects and they should be valued with respect to local incomes. More importantly, LAND is immovable and it constitutes the bulk of house’s value. If you could somehow build houses and land in China and bring them to the U.S. for cheap, your reasoning would have been solid.
They had the presses printing money 24-7, and they have “inflated” their way out of the bubble.
Popular but false sentiment. There has been very little money-printing since 2005.
countless savers are being robbed of the value of their life savings
Who’s being robbed? I’m not being robbed. Most of my money is in things like FXE. Most Americans are not being robbed, either. In 2000, 7 out of 10 American households had less than $25k of wealth, including their cars and 401k accounts. They have nothing to lose but their chains.
March 13, 2008 at 3:49 PM #169275ParticipantForget the dollar when you want to value a house. Use something real and concrete, like oil or gold.
Houses are immovable objects and they should be valued with respect to local incomes. More importantly, LAND is immovable and it constitutes the bulk of house’s value. If you could somehow build houses and land in China and bring them to the U.S. for cheap, your reasoning would have been solid.
They had the presses printing money 24-7, and they have “inflated” their way out of the bubble.
Popular but false sentiment. There has been very little money-printing since 2005.
countless savers are being robbed of the value of their life savings
Who’s being robbed? I’m not being robbed. Most of my money is in things like FXE. Most Americans are not being robbed, either. In 2000, 7 out of 10 American households had less than $25k of wealth, including their cars and 401k accounts. They have nothing to lose but their chains.
March 13, 2008 at 3:49 PM #169353ParticipantForget the dollar when you want to value a house. Use something real and concrete, like oil or gold.
Houses are immovable objects and they should be valued with respect to local incomes. More importantly, LAND is immovable and it constitutes the bulk of house’s value. If you could somehow build houses and land in China and bring them to the U.S. for cheap, your reasoning would have been solid.
They had the presses printing money 24-7, and they have “inflated” their way out of the bubble.
Popular but false sentiment. There has been very little money-printing since 2005.
countless savers are being robbed of the value of their life savings
Who’s being robbed? I’m not being robbed. Most of my money is in things like FXE. Most Americans are not being robbed, either. In 2000, 7 out of 10 American households had less than $25k of wealth, including their cars and 401k accounts. They have nothing to lose but their chains.
March 13, 2008 at 3:59 PM #168932ParticipantAll I’m trying to say is that by accelerating domestic inflation, the Fed is seeking to restore the housing price/income and price/rent ratio by debasing the value of the dollar, as opposed to waiting for the adjustment to come from price drops only.
How do we know the dollar is being devaluated? Measure it in terms of precious metals, gold, and stable currencies like the Euro.
The US dollar is extremely overvalued. Trade deficit of 6% of GDP is proof. Sooner or later it had to devalue on its own. Fed’s actions may have lit the fuse but the bomb was already there, constructed by careless foreign policies of three presidents.
Inflation you think you see (brought on by printing presses) would have led to low unemployment and rising incomes, we’re not seeing that. There’s no monetary inflation. There’s just flight from the dollar.
March 13, 2008 at 3:59 PM #169262ParticipantAll I’m trying to say is that by accelerating domestic inflation, the Fed is seeking to restore the housing price/income and price/rent ratio by debasing the value of the dollar, as opposed to waiting for the adjustment to come from price drops only.
How do we know the dollar is being devaluated? Measure it in terms of precious metals, gold, and stable currencies like the Euro.
The US dollar is extremely overvalued. Trade deficit of 6% of GDP is proof. Sooner or later it had to devalue on its own. Fed’s actions may have lit the fuse but the bomb was already there, constructed by careless foreign policies of three presidents.
Inflation you think you see (brought on by printing presses) would have led to low unemployment and rising incomes, we’re not seeing that. There’s no monetary inflation. There’s just flight from the dollar.
March 13, 2008 at 3:59 PM #169267ParticipantAll I’m trying to say is that by accelerating domestic inflation, the Fed is seeking to restore the housing price/income and price/rent ratio by debasing the value of the dollar, as opposed to waiting for the adjustment to come from price drops only.
How do we know the dollar is being devaluated? Measure it in terms of precious metals, gold, and stable currencies like the Euro.
The US dollar is extremely overvalued. Trade deficit of 6% of GDP is proof. Sooner or later it had to devalue on its own. Fed’s actions may have lit the fuse but the bomb was already there, constructed by careless foreign policies of three presidents.
Inflation you think you see (brought on by printing presses) would have led to low unemployment and rising incomes, we’re not seeing that. There’s no monetary inflation. There’s just flight from the dollar.
March 13, 2008 at 3:59 PM #169290ParticipantAll I’m trying to say is that by accelerating domestic inflation, the Fed is seeking to restore the housing price/income and price/rent ratio by debasing the value of the dollar, as opposed to waiting for the adjustment to come from price drops only.
How do we know the dollar is being devaluated? Measure it in terms of precious metals, gold, and stable currencies like the Euro.
The US dollar is extremely overvalued. Trade deficit of 6% of GDP is proof. Sooner or later it had to devalue on its own. Fed’s actions may have lit the fuse but the bomb was already there, constructed by careless foreign policies of three presidents.
Inflation you think you see (brought on by printing presses) would have led to low unemployment and rising incomes, we’re not seeing that. There’s no monetary inflation. There’s just flight from the dollar.
March 13, 2008 at 3:59 PM #169368ParticipantAll I’m trying to say is that by accelerating domestic inflation, the Fed is seeking to restore the housing price/income and price/rent ratio by debasing the value of the dollar, as opposed to waiting for the adjustment to come from price drops only.
How do we know the dollar is being devaluated? Measure it in terms of precious metals, gold, and stable currencies like the Euro.
The US dollar is extremely overvalued. Trade deficit of 6% of GDP is proof. Sooner or later it had to devalue on its own. Fed’s actions may have lit the fuse but the bomb was already there, constructed by careless foreign policies of three presidents.
Inflation you think you see (brought on by printing presses) would have led to low unemployment and rising incomes, we’re not seeing that. There’s no monetary inflation. There’s just flight from the dollar.
March 13, 2008 at 4:10 PM #168938Diego Mamani
ParticipantCooprider,
Thanks for commenting, and I agree that incomes are important. But, please, check your math! A 100% appreciation would result in the house being at $814 today ($407 times 2). But somehow you come up with 175% appreciation??The house went from $407 to, say, $712.5 in 79 months. That comes to a monthly appreciation of 0.7113% per month. That’s 8.9% per year. That’s still very high, and incomes haven’t increased that fast. But it’s nowhere near the 24% annual apprication in housing that you came up with. That’s what housing shrills like Lereah wanted us to believe!
Us housing bears need to be relatviely proficient in math…
March 13, 2008 at 4:10 PM #169266ParticipantCooprider,
Thanks for commenting, and I agree that incomes are important. But, please, check your math! A 100% appreciation would result in the house being at $814 today ($407 times 2). But somehow you come up with 175% appreciation??The house went from $407 to, say, $712.5 in 79 months. That comes to a monthly appreciation of 0.7113% per month. That’s 8.9% per year. That’s still very high, and incomes haven’t increased that fast. But it’s nowhere near the 24% annual apprication in housing that you came up with. That’s what housing shrills like Lereah wanted us to believe!
Us housing bears need to be relatviely proficient in math…
March 13, 2008 at 4:10 PM #169273ParticipantCooprider,
Thanks for commenting, and I agree that incomes are important. But, please, check your math! A 100% appreciation would result in the house being at $814 today ($407 times 2). But somehow you come up with 175% appreciation??The house went from $407 to, say, $712.5 in 79 months. That comes to a monthly appreciation of 0.7113% per month. That’s 8.9% per year. That’s still very high, and incomes haven’t increased that fast. But it’s nowhere near the 24% annual apprication in housing that you came up with. That’s what housing shrills like Lereah wanted us to believe!
Us housing bears need to be relatviely proficient in math…
March 13, 2008 at 4:10 PM #169295ParticipantCooprider,
Thanks for commenting, and I agree that incomes are important. But, please, check your math! A 100% appreciation would result in the house being at $814 today ($407 times 2). But somehow you come up with 175% appreciation??The house went from $407 to, say, $712.5 in 79 months. That comes to a monthly appreciation of 0.7113% per month. That’s 8.9% per year. That’s still very high, and incomes haven’t increased that fast. But it’s nowhere near the 24% annual apprication in housing that you came up with. That’s what housing shrills like Lereah wanted us to believe!
Us housing bears need to be relatviely proficient in math…
-
AuthorPosts
- You must be logged in to reply to this topic.