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ParticipantChina is balking.
If they do that, they can kiss 75-90% of their exports goodbye.
It is politics, and Congress is ignorant. If we stop buying from China people will have to pay more for nearly all commodities, and that will stifle our spending. Can you imagine that?
The dollar is about 5% down to the RMB from a year ago, and shows no signs of stopping. As China develops and the dollar continues to weaken we will buy less imports. Add to that the VAT reduction we just had and may have again before years end, China may start selling those bonds off anyway.
Either way, China US interdependence is fading, and it’s only a matter of time before we stop buying goods, they stop buying dollars, we both go to war and blow the entire planet up.
Enjoy it while you can.
ParticipantI rent in LA from an older real estate agent who has our place paid off. It doesn’t have the ammenities of a high end place, but I was in a 1Br for 3 years and $750/mo, no increases. I just moved into the 2br to wait this housing crash out. It’s a triplex and the family in the back has been in a larger 2br 14years and has seen 3 rent hikes. Their monthly rent now? $800/mo.
Without a doubt those negatively affected by poor refi or purchase decisions on rental properties will definately be looking at their tenants for help. But they can’t arbitrarily raise it without fallout. If it’s too high, move. If they foreclose, maybe you can get a good deal on it, if not you move. It’s a pain, but you’re still better off.
If you can, find a landlord with the building paid off, not brand new or top of the line, but low rent. It’s a great place to wait it out.
People forget that owning the property isn’t all it’s cracked up to be. Would you rather be stuck holding the cash or the property? If you rent responsibly you will have the former.
ParticipantI rent in LA from an older real estate agent who has our place paid off. It doesn’t have the ammenities of a high end place, but I was in a 1Br for 3 years and $750/mo, no increases. I just moved into the 2br to wait this housing crash out. It’s a triplex and the family in the back has been in a larger 2br 14years and has seen 3 rent hikes. Their monthly rent now? $800/mo.
Without a doubt those negatively affected by poor refi or purchase decisions on rental properties will definately be looking at their tenants for help. But they can’t arbitrarily raise it without fallout. If it’s too high, move. If they foreclose, maybe you can get a good deal on it, if not you move. It’s a pain, but you’re still better off.
If you can, find a landlord with the building paid off, not brand new or top of the line, but low rent. It’s a great place to wait it out.
People forget that owning the property isn’t all it’s cracked up to be. Would you rather be stuck holding the cash or the property? If you rent responsibly you will have the former.
ParticipantI rent in LA from an older real estate agent who has our place paid off. It doesn’t have the ammenities of a high end place, but I was in a 1Br for 3 years and $750/mo, no increases. I just moved into the 2br to wait this housing crash out. It’s a triplex and the family in the back has been in a larger 2br 14years and has seen 3 rent hikes. Their monthly rent now? $800/mo.
Without a doubt those negatively affected by poor refi or purchase decisions on rental properties will definately be looking at their tenants for help. But they can’t arbitrarily raise it without fallout. If it’s too high, move. If they foreclose, maybe you can get a good deal on it, if not you move. It’s a pain, but you’re still better off.
If you can, find a landlord with the building paid off, not brand new or top of the line, but low rent. It’s a great place to wait it out.
People forget that owning the property isn’t all it’s cracked up to be. Would you rather be stuck holding the cash or the property? If you rent responsibly you will have the former.
ParticipantIs San Diego overpriced or is it just corrected?
Overpriced.
ParticipantIs San Diego overpriced or is it just corrected?
Overpriced.
ParticipantIs San Diego overpriced or is it just corrected?
Overpriced.
Participant“The Fed statement said officials believe the economy ‘is likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.'”
and…(emphasis added)
“Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the Committee’s predominant policy concern remains the risk that inflation will fail to moderate as expected.”
Sounds like a lot political speak to say “we have no idea what to do.” Also sounds like wishful thinking on incomes, the gimick of core inflation, employment, and that only sub-prime mortgages are defaulting. It does sounds like they may consider raising rates despite the growing cry from the bulls to lower them.
They can’t do nothing forever.
Participant“The Fed statement said officials believe the economy ‘is likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.'”
and…(emphasis added)
“Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the Committee’s predominant policy concern remains the risk that inflation will fail to moderate as expected.”
Sounds like a lot political speak to say “we have no idea what to do.” Also sounds like wishful thinking on incomes, the gimick of core inflation, employment, and that only sub-prime mortgages are defaulting. It does sounds like they may consider raising rates despite the growing cry from the bulls to lower them.
They can’t do nothing forever.
Participant“The Fed statement said officials believe the economy ‘is likely to continue to expand at a moderate pace over coming quarters, supported by solid growth in employment and incomes and a robust global economy.'”
and…(emphasis added)
“Readings on core inflation have improved modestly in recent months. However, a sustained moderation in inflation pressures has yet to be convincingly demonstrated. Moreover, the high level of resource utilization has the potential to sustain those pressures.
Although the downside risks to growth have increased somewhat, the Committee’s predominant policy concern remains the risk that inflation will fail to moderate as expected.”
Sounds like a lot political speak to say “we have no idea what to do.” Also sounds like wishful thinking on incomes, the gimick of core inflation, employment, and that only sub-prime mortgages are defaulting. It does sounds like they may consider raising rates despite the growing cry from the bulls to lower them.
They can’t do nothing forever.
ParticipantMy guess is the FED will say “core inflation is under control, job levels are good, and they are keeping an eye on the credit crunch”, and do nothing.
Translation: food/energy are still burdensome, unemployment is growing as all things associated with RE tank, but some jobs are resurfacing in retail and service inndustries, and the credit tsunami is landing, but since we’ve done nothing for a year, we can’t do anything now.
Lowering rates kills the dollar, raising them kills business.
The FED is between a rock and a hard place.
ParticipantMy guess is the FED will say “core inflation is under control, job levels are good, and they are keeping an eye on the credit crunch”, and do nothing.
Translation: food/energy are still burdensome, unemployment is growing as all things associated with RE tank, but some jobs are resurfacing in retail and service inndustries, and the credit tsunami is landing, but since we’ve done nothing for a year, we can’t do anything now.
Lowering rates kills the dollar, raising them kills business.
The FED is between a rock and a hard place.
ParticipantMy guess is the FED will say “core inflation is under control, job levels are good, and they are keeping an eye on the credit crunch”, and do nothing.
Translation: food/energy are still burdensome, unemployment is growing as all things associated with RE tank, but some jobs are resurfacing in retail and service inndustries, and the credit tsunami is landing, but since we’ve done nothing for a year, we can’t do anything now.
Lowering rates kills the dollar, raising them kills business.
The FED is between a rock and a hard place.
ParticipantWhat’s so bad about prices declining? Most people here are either for it or expect it even if they lose some equity. Those avidly against it we tend to drive away, so I am just posing the question: so what if prices fall 50%? They went up 2-300% or more in some places. Even if realistic circumstances could sustain that why wouldn’t we want prices to fall?
Equity isn’t wealth until the house is sold, and that requires someone with MORE money who can afford your house.
In theory buyers, banks, and investors should be fine no matter how low prices go, but skyrocketing defaults leave buyers and lenders facing the consequences of poor business, deception, and outright lying. That’s rough, but if I placed my life savings on red 7 and lost, should the government have to give me my money back?
People are against prices falling because of the sense of entitlement derived from abnormal appreciation. I think people felt like they deserved to be millionaires when their 3br 2ba 1500sq ft house went from $400,000 to $1,000,000 in value, as if they earned it. They didn’t do anything!!
I think “the everyone wants to live here” claim is a cop out. Even the best cities have bad parts where people with money won’t live. SoCal, from SD to Santa Barabara is a great place to live, but there are plenty of equally nice places across the US, and other countries. International money will do a little, but as soon at the values drop they’ll bow out too.
Outside the dollar eqauling the peso, or incomes doubling next year, I can’t think of anything that will sustain these prices.
The past bubbles have overcorrected, and I hope this one does too. After a few years of correction, as suggested we think, it will be a positive. Those who foreclose, may actually be able to afford a house again, and those who are priced out or weren’t foolish enough to get into an overpriced market may too.
In the end, all this will be is a more painful way to have gotten to the historical average increase in prices. The result is people will be able to afford houses with a fixed loan. Now that’s just crazy!
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