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August 22, 2008 at 10:07 AM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #260277August 22, 2008 at 10:07 AM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #260317
(former)FormerSanDiegan
ParticipantWho cares if my index funds are up 80% if food and energy are up 200-300%?
I care.
Food and energy currently compose about 10% of our annual household budget.
Our investments are about 500% of our annual income.
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
Participant[quote=gdcox]Request. Please don’t post any data including refinancings. It has no place in this section of the forums. Application for home purchase is the only useful statistic.[/quote]
The extent that people can or cannot refinance significantly affects the dynamics and impact of mortgage resets. Mortgage resets are often cited as a source for a new wave of foreclosures. This certainly impacts housing.
If refinance applications are declining in a period of lower interest rates, it can signal capitulation or an exhaustion of options for homeowners underwater.
August 22, 2008 at 8:31 AM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #259972ParticipantOK, now I think I get it.
Here’s my understanding of what you told me…
Oil is relatively the same.
Oil goes up.
When stocks rise 87% it’s really a decline because we measure it in gold or oil.
When houses rose 100% it was a bubble because unlike stocks we don’t measure houses in terms of oil or gold.
The reason we measure stocks in oil or gold and don’t measure houses in oil is because a barrel of oil costs the same whether in Detroit than San Diego.
The dominant economic trend is deflationary.
Beyond that you can have price inflation/deflation every which way.
Thanks.
August 22, 2008 at 8:31 AM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #260167ParticipantOK, now I think I get it.
Here’s my understanding of what you told me…
Oil is relatively the same.
Oil goes up.
When stocks rise 87% it’s really a decline because we measure it in gold or oil.
When houses rose 100% it was a bubble because unlike stocks we don’t measure houses in terms of oil or gold.
The reason we measure stocks in oil or gold and don’t measure houses in oil is because a barrel of oil costs the same whether in Detroit than San Diego.
The dominant economic trend is deflationary.
Beyond that you can have price inflation/deflation every which way.
Thanks.
August 22, 2008 at 8:31 AM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #260180ParticipantOK, now I think I get it.
Here’s my understanding of what you told me…
Oil is relatively the same.
Oil goes up.
When stocks rise 87% it’s really a decline because we measure it in gold or oil.
When houses rose 100% it was a bubble because unlike stocks we don’t measure houses in terms of oil or gold.
The reason we measure stocks in oil or gold and don’t measure houses in oil is because a barrel of oil costs the same whether in Detroit than San Diego.
The dominant economic trend is deflationary.
Beyond that you can have price inflation/deflation every which way.
Thanks.
August 22, 2008 at 8:31 AM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #260228ParticipantOK, now I think I get it.
Here’s my understanding of what you told me…
Oil is relatively the same.
Oil goes up.
When stocks rise 87% it’s really a decline because we measure it in gold or oil.
When houses rose 100% it was a bubble because unlike stocks we don’t measure houses in terms of oil or gold.
The reason we measure stocks in oil or gold and don’t measure houses in oil is because a barrel of oil costs the same whether in Detroit than San Diego.
The dominant economic trend is deflationary.
Beyond that you can have price inflation/deflation every which way.
Thanks.
August 22, 2008 at 8:31 AM in reply to: Peter Schiff: Housing prices will go back to 2000 or lower… #260268ParticipantOK, now I think I get it.
Here’s my understanding of what you told me…
Oil is relatively the same.
Oil goes up.
When stocks rise 87% it’s really a decline because we measure it in gold or oil.
When houses rose 100% it was a bubble because unlike stocks we don’t measure houses in terms of oil or gold.
The reason we measure stocks in oil or gold and don’t measure houses in oil is because a barrel of oil costs the same whether in Detroit than San Diego.
The dominant economic trend is deflationary.
Beyond that you can have price inflation/deflation every which way.
Thanks.
ParticipantI guess by the strict definition you are probably a knife catcher, since prices are still on a downward trend.
However, at least you didn’t catch a machete with your head. Hopefully it’s more like catching a steak knife with your pinky toe. Sure it will hurt and bleed a little, but it won’t kill you.
ParticipantI guess by the strict definition you are probably a knife catcher, since prices are still on a downward trend.
However, at least you didn’t catch a machete with your head. Hopefully it’s more like catching a steak knife with your pinky toe. Sure it will hurt and bleed a little, but it won’t kill you.
ParticipantI guess by the strict definition you are probably a knife catcher, since prices are still on a downward trend.
However, at least you didn’t catch a machete with your head. Hopefully it’s more like catching a steak knife with your pinky toe. Sure it will hurt and bleed a little, but it won’t kill you.
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