[Borat]

Hahahahaha — Santa Claus! He does look like St. Nick! But when even Santa can’t afford a condo to relax in during the off-season, you know prices are too high…

[Borat]

San Diego is a really glamorous city. Here’s a sample of the glamour you can see every day in my neighborhood:

[img_assist|nid=3986|desc=|link=node|align=left|width=466|height=467]

[Borat]

San Diego is a really glamorous city. Here’s a sample of the glamour you can see every day in my neighborhood:

[img_assist|nid=3986|desc=|link=node|align=left|width=466|height=467]

[Borat]

I’m not looking for any salvation, I’m just pointing out a likely course of action from the government and fed. The housing market is at the beginning of a loooooong downward slide, but the inflationary scenario could mask the issue for a little while longer. Remember that there’s only 18 months left in this administration. Optimally they’d like to delay the inevitable collapse until then so that it can be blamed/dumped on whoever gets elected next.

[Borat]

I’m not looking for any salvation, I’m just pointing out a likely course of action from the government and fed. The housing market is at the beginning of a loooooong downward slide, but the inflationary scenario could mask the issue for a little while longer. Remember that there’s only 18 months left in this administration. Optimally they’d like to delay the inevitable collapse until then so that it can be blamed/dumped on whoever gets elected next.

[Borat]

I didn’t mean to say that an inflationary scenario would prevent home prices from coming down, just that it may skew when things happen and by how much. Looking at ARM reset charts gives us a scale of magnitude for the problem, but using them to try to time the market is probably ill-advised, especially since monetary policy will have a huge impact on whatever happens. Whether we like it or not, inflation will help some ARM borrowers and might actually keep a few of them from losing their homes. Looking at past performance as a predictor, it’s still a fair bet (IMO) that the fed/government will try and print their way out of this mess…

[Borat]

I didn’t mean to say that an inflationary scenario would prevent home prices from coming down, just that it may skew when things happen and by how much. Looking at ARM reset charts gives us a scale of magnitude for the problem, but using them to try to time the market is probably ill-advised, especially since monetary policy will have a huge impact on whatever happens. Whether we like it or not, inflation will help some ARM borrowers and might actually keep a few of them from losing their homes. Looking at past performance as a predictor, it’s still a fair bet (IMO) that the fed/government will try and print their way out of this mess…

[Borat]

That’s true that it hasn’t been keeping up but salaries always lag inflation — maybe they’ll start catching up soon. But regardless of what happens to salaries I expect that the fed/government will attempt to inflate their way out of the problem, primarily because they have no other arrow in their quiver at this point. Even if salaries stay flat, a devalued dollar will help people make those payments after the reset occurs since it is priced in pre-inflationary dollars.

[Borat]

That’s true that it hasn’t been keeping up but salaries always lag inflation — maybe they’ll start catching up soon. But regardless of what happens to salaries I expect that the fed/government will attempt to inflate their way out of the problem, primarily because they have no other arrow in their quiver at this point. Even if salaries stay flat, a devalued dollar will help people make those payments after the reset occurs since it is priced in pre-inflationary dollars.

[Borat]

A further devaluing of the dollar could change the picture quite a bit. Let’s say it declines another 20% relative to the more stable currencies, interest rates increase accordingly to keep the chinese and japanese money coming in, which of course causes inflation to go up as well. Salaries then of course become inflated as they try to keep pace and those “higher” mortgage payments after reset are more managable since they are denominated in pre-devaluation dollars. My guess is this is the government/fed plan to get us out of this problem. They already devalued the dollar by almost half in the last seven years to make us think things were still okay, they’ll keep on doing it as long as they can get away with it.

[Borat]

A further devaluing of the dollar could change the picture quite a bit. Let’s say it declines another 20% relative to the more stable currencies, interest rates increase accordingly to keep the chinese and japanese money coming in, which of course causes inflation to go up as well. Salaries then of course become inflated as they try to keep pace and those “higher” mortgage payments after reset are more managable since they are denominated in pre-devaluation dollars. My guess is this is the government/fed plan to get us out of this problem. They already devalued the dollar by almost half in the last seven years to make us think things were still okay, they’ll keep on doing it as long as they can get away with it.

[Borat]

San Diego will be more fun if it’s more Miami like.

It ain’t gonna be more Miami-like — it’s gonna be more TJ-like. So unless you like rocking out to Los Tigres del Norte, you may not dig it.

[Borat]

San Diego will be more fun if it’s more Miami like.

It ain’t gonna be more Miami-like — it’s gonna be more TJ-like. So unless you like rocking out to Los Tigres del Norte, you may not dig it.

[Borat]

Ron Paul puts it very well in his interview in that movie. He says something like — “well, they say there’s a law, so even though they can’t show it to you, they have all the guns and they can put you in jail if you don’t pay.” So regardless of whether or not it’s illegal it is still in effect. As if illegality ever stopped a government from doing anything! Hell, Cheney now exists in an undefined quantum state, neither in the executive or legislative branch but simultaneously in both — except when he’s not. And Scooter gets to scoot after he obstructs justice. And Clinton pardons Marc Rich in 2000 after Scooter pleaded his case (it’s true!) Iran/Contra, Watergate, etc… etc… ad nauseum. Anyway, you get the idea. Maybe it is illegal but that’s what governments specialize in — illegal activities; they’ll still throw your ass in lockup if you don’t pay.

[Borat]

Ron Paul puts it very well in his interview in that movie. He says something like — “well, they say there’s a law, so even though they can’t show it to you, they have all the guns and they can put you in jail if you don’t pay.” So regardless of whether or not it’s illegal it is still in effect. As if illegality ever stopped a government from doing anything! Hell, Cheney now exists in an undefined quantum state, neither in the executive or legislative branch but simultaneously in both — except when he’s not. And Scooter gets to scoot after he obstructs justice. And Clinton pardons Marc Rich in 2000 after Scooter pleaded his case (it’s true!) Iran/Contra, Watergate, etc… etc… ad nauseum. Anyway, you get the idea. Maybe it is illegal but that’s what governments specialize in — illegal activities; they’ll still throw your ass in lockup if you don’t pay.

[Author]

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