[DWCAP]

[quote=SK in CV]
You have a good point there. I didn’t really write what I was thinking. If an investor moves money from a bank account into the market by buying stock and the seller of that stock then acquired a different stock, the money supply has gone down. If the seller stays in cash, you are correct, no change to the money supply. And by trading, I meant sell Ford, buy Alcoa. [/quote]

I certainly could have missed something, but why? So I took $1 and bought a stock (say Ford) from you. That $1 went to your account, who then took the $1 you got from selling (Ford)and bought some other stock (say Alcoa) from flu. That $1 now resides in the account of flu who use to own alcoa. I own your Ford stock, you own flu’s Alcoa stock, and flu has the dollar. How did the money supply change?

The only way I know of money supply to change is for the FED to ‘print’, or banks to loan.

[DWCAP]

[quote=SK in CV]
You have a good point there. I didn’t really write what I was thinking. If an investor moves money from a bank account into the market by buying stock and the seller of that stock then acquired a different stock, the money supply has gone down. If the seller stays in cash, you are correct, no change to the money supply. And by trading, I meant sell Ford, buy Alcoa. [/quote]

I certainly could have missed something, but why? So I took $1 and bought a stock (say Ford) from you. That $1 went to your account, who then took the $1 you got from selling (Ford)and bought some other stock (say Alcoa) from flu. That $1 now resides in the account of flu who use to own alcoa. I own your Ford stock, you own flu’s Alcoa stock, and flu has the dollar. How did the money supply change?

The only way I know of money supply to change is for the FED to ‘print’, or banks to loan.

[DWCAP]

I saw a great paragraph in an article this week, but forgot where and cant find it again. It was some ‘economist’ (I use that loosly cause if I remember right it was for a political think tank) who was quoted as saying that the government had done a very good job stabilizing housing prices, but now needed to improve overall affordability.

The irony of the fact that stabilizing housing prices is reducing affordability was totally lost on them.

[DWCAP]

I saw a great paragraph in an article this week, but forgot where and cant find it again. It was some ‘economist’ (I use that loosly cause if I remember right it was for a political think tank) who was quoted as saying that the government had done a very good job stabilizing housing prices, but now needed to improve overall affordability.

The irony of the fact that stabilizing housing prices is reducing affordability was totally lost on them.

[DWCAP]

I saw a great paragraph in an article this week, but forgot where and cant find it again. It was some ‘economist’ (I use that loosly cause if I remember right it was for a political think tank) who was quoted as saying that the government had done a very good job stabilizing housing prices, but now needed to improve overall affordability.

The irony of the fact that stabilizing housing prices is reducing affordability was totally lost on them.

[DWCAP]

I saw a great paragraph in an article this week, but forgot where and cant find it again. It was some ‘economist’ (I use that loosly cause if I remember right it was for a political think tank) who was quoted as saying that the government had done a very good job stabilizing housing prices, but now needed to improve overall affordability.

The irony of the fact that stabilizing housing prices is reducing affordability was totally lost on them.

[DWCAP]

I saw a great paragraph in an article this week, but forgot where and cant find it again. It was some ‘economist’ (I use that loosly cause if I remember right it was for a political think tank) who was quoted as saying that the government had done a very good job stabilizing housing prices, but now needed to improve overall affordability.

The irony of the fact that stabilizing housing prices is reducing affordability was totally lost on them.

[DWCAP]

I would just like to point out that CAR’s rant was about listing prices, while everything AN and sdr are talking about are selling prices. As if these are the same things. (there is a nice little red and blue graph from rich here detailing CAR’s frustrations) Are either of you saying that there are no listings that are horrendously over market and just sitting? Is that something a buyer in an inventory constrained market shouldnt be frustrated by?

To put it another way,

“seller will entertain offers between ‘peak bubble pricing’ and ‘absoulute delusion'” is not a good way to sell houses. And why is it that offering (what the buyer considers) to be market prices is so insulting? Dont like the offer, dont take it.

or

[quote] 3. These are asking prices and not sold prices. I can ask $1M for my pencil and be delusional. [/quote]

Yes, exactly her point.

[DWCAP]

I would just like to point out that CAR’s rant was about listing prices, while everything AN and sdr are talking about are selling prices. As if these are the same things. (there is a nice little red and blue graph from rich here detailing CAR’s frustrations) Are either of you saying that there are no listings that are horrendously over market and just sitting? Is that something a buyer in an inventory constrained market shouldnt be frustrated by?

To put it another way,

“seller will entertain offers between ‘peak bubble pricing’ and ‘absoulute delusion'” is not a good way to sell houses. And why is it that offering (what the buyer considers) to be market prices is so insulting? Dont like the offer, dont take it.

or

[quote] 3. These are asking prices and not sold prices. I can ask $1M for my pencil and be delusional. [/quote]

Yes, exactly her point.

[DWCAP]

I would just like to point out that CAR’s rant was about listing prices, while everything AN and sdr are talking about are selling prices. As if these are the same things. (there is a nice little red and blue graph from rich here detailing CAR’s frustrations) Are either of you saying that there are no listings that are horrendously over market and just sitting? Is that something a buyer in an inventory constrained market shouldnt be frustrated by?

To put it another way,

“seller will entertain offers between ‘peak bubble pricing’ and ‘absoulute delusion'” is not a good way to sell houses. And why is it that offering (what the buyer considers) to be market prices is so insulting? Dont like the offer, dont take it.

or

[quote] 3. These are asking prices and not sold prices. I can ask $1M for my pencil and be delusional. [/quote]

Yes, exactly her point.

[DWCAP]

I would just like to point out that CAR’s rant was about listing prices, while everything AN and sdr are talking about are selling prices. As if these are the same things. (there is a nice little red and blue graph from rich here detailing CAR’s frustrations) Are either of you saying that there are no listings that are horrendously over market and just sitting? Is that something a buyer in an inventory constrained market shouldnt be frustrated by?

To put it another way,

“seller will entertain offers between ‘peak bubble pricing’ and ‘absoulute delusion'” is not a good way to sell houses. And why is it that offering (what the buyer considers) to be market prices is so insulting? Dont like the offer, dont take it.

or

[quote] 3. These are asking prices and not sold prices. I can ask $1M for my pencil and be delusional. [/quote]

Yes, exactly her point.

[DWCAP]

I would just like to point out that CAR’s rant was about listing prices, while everything AN and sdr are talking about are selling prices. As if these are the same things. (there is a nice little red and blue graph from rich here detailing CAR’s frustrations) Are either of you saying that there are no listings that are horrendously over market and just sitting? Is that something a buyer in an inventory constrained market shouldnt be frustrated by?

To put it another way,

“seller will entertain offers between ‘peak bubble pricing’ and ‘absoulute delusion'” is not a good way to sell houses. And why is it that offering (what the buyer considers) to be market prices is so insulting? Dont like the offer, dont take it.

or

[quote] 3. These are asking prices and not sold prices. I can ask $1M for my pencil and be delusional. [/quote]

Yes, exactly her point.

[DWCAP]

[quote=poorgradstudent]There is no one real source of blame for the housing bubble and financial crisis. There were people who could have done something to stop it (Clinton and Bush administrations, Congress (either party at various points in time), Greenspan). There were regulatory agencies with no teeth that set policies in place that encouraged banks to make risky loans. There were homebuyers that stated more income than they made, and banks that didn’t bother checking those claims. There were some very smart math nerds at banks that made a very fatal error when averaging out risk, ignoring the possibility of systemic risk.

This is what makes it so frustrating for the average american. There’s no easy scapegoat. It’s easy to paint your own personal politics onto it. Republicans can blame Fannie, Freddie, the Democrats and poor people. Democrats can blame Bush, the Big Banks, Republicans, and individual greed. The truth is a lot of people screwed up.[/quote]

+1. You summed up what I was trying to write very well. I still to this day dont understand why Americans cant seem to grasp the idea that sometimes everyone involved is to blaim. That sometimes it isnt evil people doing nafarious deeds, but rather alot of good people doing stupid things.

[DWCAP]

[quote=poorgradstudent]There is no one real source of blame for the housing bubble and financial crisis. There were people who could have done something to stop it (Clinton and Bush administrations, Congress (either party at various points in time), Greenspan). There were regulatory agencies with no teeth that set policies in place that encouraged banks to make risky loans. There were homebuyers that stated more income than they made, and banks that didn’t bother checking those claims. There were some very smart math nerds at banks that made a very fatal error when averaging out risk, ignoring the possibility of systemic risk.

This is what makes it so frustrating for the average american. There’s no easy scapegoat. It’s easy to paint your own personal politics onto it. Republicans can blame Fannie, Freddie, the Democrats and poor people. Democrats can blame Bush, the Big Banks, Republicans, and individual greed. The truth is a lot of people screwed up.[/quote]

+1. You summed up what I was trying to write very well. I still to this day dont understand why Americans cant seem to grasp the idea that sometimes everyone involved is to blaim. That sometimes it isnt evil people doing nafarious deeds, but rather alot of good people doing stupid things.

[DWCAP]

[quote=poorgradstudent]There is no one real source of blame for the housing bubble and financial crisis. There were people who could have done something to stop it (Clinton and Bush administrations, Congress (either party at various points in time), Greenspan). There were regulatory agencies with no teeth that set policies in place that encouraged banks to make risky loans. There were homebuyers that stated more income than they made, and banks that didn’t bother checking those claims. There were some very smart math nerds at banks that made a very fatal error when averaging out risk, ignoring the possibility of systemic risk.

This is what makes it so frustrating for the average american. There’s no easy scapegoat. It’s easy to paint your own personal politics onto it. Republicans can blame Fannie, Freddie, the Democrats and poor people. Democrats can blame Bush, the Big Banks, Republicans, and individual greed. The truth is a lot of people screwed up.[/quote]

+1. You summed up what I was trying to write very well. I still to this day dont understand why Americans cant seem to grasp the idea that sometimes everyone involved is to blaim. That sometimes it isnt evil people doing nafarious deeds, but rather alot of good people doing stupid things.

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