[Fearful]

Rich, that’s a first-rate write-up. Thank you.

I find it hard to believe that the Fed would knowingly allow moderate to severe inflation, but maybe that is preferable to risk of deflation?

One could argue that the emergency cut this morning was to forestall panic in the markets.

Or that declines in the markets informed the Fed that economic contraction was under way, so it made sense to avert deflation by proactively cutting interest rates to hold the money supply steady.

Very confusing times we live in.

[Fearful]

Rich, that’s a first-rate write-up. Thank you.

I find it hard to believe that the Fed would knowingly allow moderate to severe inflation, but maybe that is preferable to risk of deflation?

One could argue that the emergency cut this morning was to forestall panic in the markets.

Or that declines in the markets informed the Fed that economic contraction was under way, so it made sense to avert deflation by proactively cutting interest rates to hold the money supply steady.

Very confusing times we live in.

[Fearful]

Rich, that’s a first-rate write-up. Thank you.

I find it hard to believe that the Fed would knowingly allow moderate to severe inflation, but maybe that is preferable to risk of deflation?

One could argue that the emergency cut this morning was to forestall panic in the markets.

Or that declines in the markets informed the Fed that economic contraction was under way, so it made sense to avert deflation by proactively cutting interest rates to hold the money supply steady.

Very confusing times we live in.

[Fearful]

I was going to make the stripper pole comment but thought it tasteless. Good to see some folks are even less tasteful than I.

Marion doesn’t like fireman’s poles unless they come with firemen.

[Fearful]

I was going to make the stripper pole comment but thought it tasteless. Good to see some folks are even less tasteful than I.

Marion doesn’t like fireman’s poles unless they come with firemen.

[Fearful]

I was going to make the stripper pole comment but thought it tasteless. Good to see some folks are even less tasteful than I.

Marion doesn’t like fireman’s poles unless they come with firemen.

[Fearful]

I was going to make the stripper pole comment but thought it tasteless. Good to see some folks are even less tasteful than I.

Marion doesn’t like fireman’s poles unless they come with firemen.

[Fearful]

I was going to make the stripper pole comment but thought it tasteless. Good to see some folks are even less tasteful than I.

Marion doesn’t like fireman’s poles unless they come with firemen.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

What area of SD are you looking in? I am looking for 4-5BR in Carmel Valley.

I could see a short term upward pressure on rents as foreclosed houses stand vacant and are not offered for rent.

Longer term, though, as local recession eats in to affordability, rents will decline as demand decreases due to falling employment. If nothing else, reduced construction jobs pull down the local economy. Reduced demand means reduced willingness to pay rents.

As the local economy contracts there ends up being a net exodus. This does not mean that people everywhere are packing up their bags; rather, people naturally leaving are replaced a little less vigorously. Decreased population applies significant downward pressure on rents.

[Fearful]

While you’re at it, ask how much the condo should price at with option arm / teaser rate / toxic shoxic loans.

The ONLY apples to apples comparison is house price. If you compare 30yr fixed, they were about the same in mid-90’s as now, so it’s a spurious argument anyway.

Furthermore, after adjusting for inflation, if anything, prices should fall below the mid-90’s nadir, as they should overshoot more to the negative, as they went further out of whack to the positive.

[Fearful]

While you’re at it, ask how much the condo should price at with option arm / teaser rate / toxic shoxic loans.

The ONLY apples to apples comparison is house price. If you compare 30yr fixed, they were about the same in mid-90’s as now, so it’s a spurious argument anyway.

Furthermore, after adjusting for inflation, if anything, prices should fall below the mid-90’s nadir, as they should overshoot more to the negative, as they went further out of whack to the positive.

[Author]

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