[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

I’m no expert, but I think FSD is on to the answer.

You don’t need to foreclose if you can sell and cover your loan.

Foreclosures are by nature a vicious downward sprial that will force prices to the bottom, determined eventually by how many people are in houses they shouldn’t be in, and at what point enough people are able to start buying those empty houses.

You can see why Gov’t intervention is so problematic. Keeping property values high means someone still has to be able to afford the house.

Bailing people out with lower interest rates and write-downs does nothing to help inventory or future buyers.

Prices will fall until they reach an equilibrium of the historical price to income ratio. Even then, prices will probably overshoot. They did before.

[cr]

[quote=JWM in SD]I am still skeptical about the Fed’s ability to reflate without losing control of money supply. that is the real risk in their attempt to reflate. [/quote]

That and the potential of hyper-inflation. Everyone is now crying DEflation! DEflation!, but other than commodity prices, which so far have only resulted in lower gasoline prices, I’m not seeing it.

I went to In-N-Out the other day and their prices went up at least the 2nd time in the last 12 mos.

At a local driving range balls went up 20-30% a bucket. Groceries have not dropped, and though I haven’t researched them all very closely electronics, clothing, and consumables don’t appear to have budged either.

Sure GM is giving away cars, but that’s because those companies were run into the ground. Toyota and Honda prices aren’t plummetting, are they?

Gas at half price may be skewing the delfation readings if you ask me. But then again, no one asked me…

[cr]

[quote=JWM in SD]I am still skeptical about the Fed’s ability to reflate without losing control of money supply. that is the real risk in their attempt to reflate. [/quote]

That and the potential of hyper-inflation. Everyone is now crying DEflation! DEflation!, but other than commodity prices, which so far have only resulted in lower gasoline prices, I’m not seeing it.

I went to In-N-Out the other day and their prices went up at least the 2nd time in the last 12 mos.

At a local driving range balls went up 20-30% a bucket. Groceries have not dropped, and though I haven’t researched them all very closely electronics, clothing, and consumables don’t appear to have budged either.

Sure GM is giving away cars, but that’s because those companies were run into the ground. Toyota and Honda prices aren’t plummetting, are they?

Gas at half price may be skewing the delfation readings if you ask me. But then again, no one asked me…

[cr]

[quote=JWM in SD]I am still skeptical about the Fed’s ability to reflate without losing control of money supply. that is the real risk in their attempt to reflate. [/quote]

That and the potential of hyper-inflation. Everyone is now crying DEflation! DEflation!, but other than commodity prices, which so far have only resulted in lower gasoline prices, I’m not seeing it.

I went to In-N-Out the other day and their prices went up at least the 2nd time in the last 12 mos.

At a local driving range balls went up 20-30% a bucket. Groceries have not dropped, and though I haven’t researched them all very closely electronics, clothing, and consumables don’t appear to have budged either.

Sure GM is giving away cars, but that’s because those companies were run into the ground. Toyota and Honda prices aren’t plummetting, are they?

Gas at half price may be skewing the delfation readings if you ask me. But then again, no one asked me…

[cr]

[quote=JWM in SD]I am still skeptical about the Fed’s ability to reflate without losing control of money supply. that is the real risk in their attempt to reflate. [/quote]

That and the potential of hyper-inflation. Everyone is now crying DEflation! DEflation!, but other than commodity prices, which so far have only resulted in lower gasoline prices, I’m not seeing it.

I went to In-N-Out the other day and their prices went up at least the 2nd time in the last 12 mos.

At a local driving range balls went up 20-30% a bucket. Groceries have not dropped, and though I haven’t researched them all very closely electronics, clothing, and consumables don’t appear to have budged either.

Sure GM is giving away cars, but that’s because those companies were run into the ground. Toyota and Honda prices aren’t plummetting, are they?

Gas at half price may be skewing the delfation readings if you ask me. But then again, no one asked me…

[cr]

[quote=JWM in SD]I am still skeptical about the Fed’s ability to reflate without losing control of money supply. that is the real risk in their attempt to reflate. [/quote]

That and the potential of hyper-inflation. Everyone is now crying DEflation! DEflation!, but other than commodity prices, which so far have only resulted in lower gasoline prices, I’m not seeing it.

I went to In-N-Out the other day and their prices went up at least the 2nd time in the last 12 mos.

At a local driving range balls went up 20-30% a bucket. Groceries have not dropped, and though I haven’t researched them all very closely electronics, clothing, and consumables don’t appear to have budged either.

Sure GM is giving away cars, but that’s because those companies were run into the ground. Toyota and Honda prices aren’t plummetting, are they?

Gas at half price may be skewing the delfation readings if you ask me. But then again, no one asked me…

[cr]

There was another article recently that said the same thing but more than media figures these guys are economists, and Thornburg in particular has been calling for a correction for some time.

Eventually MSM will catch on, but only after moratoriums fail completely, rework cram-downs lead to less lending from banks, higher defaults, and more inventory.

Then one day it will hit them – affordable housing is good.

[cr]

There was another article recently that said the same thing but more than media figures these guys are economists, and Thornburg in particular has been calling for a correction for some time.

Eventually MSM will catch on, but only after moratoriums fail completely, rework cram-downs lead to less lending from banks, higher defaults, and more inventory.

Then one day it will hit them – affordable housing is good.

[cr]

There was another article recently that said the same thing but more than media figures these guys are economists, and Thornburg in particular has been calling for a correction for some time.

Eventually MSM will catch on, but only after moratoriums fail completely, rework cram-downs lead to less lending from banks, higher defaults, and more inventory.

Then one day it will hit them – affordable housing is good.

[cr]

There was another article recently that said the same thing but more than media figures these guys are economists, and Thornburg in particular has been calling for a correction for some time.

Eventually MSM will catch on, but only after moratoriums fail completely, rework cram-downs lead to less lending from banks, higher defaults, and more inventory.

Then one day it will hit them – affordable housing is good.

[cr]

There was another article recently that said the same thing but more than media figures these guys are economists, and Thornburg in particular has been calling for a correction for some time.

Eventually MSM will catch on, but only after moratoriums fail completely, rework cram-downs lead to less lending from banks, higher defaults, and more inventory.

Then one day it will hit them – affordable housing is good.

[Author]

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