[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

[quote=SK in CV]….
You think it’s all about the borrowers. It isn’t. It’s about the lenders.[/quote]

I like your reasoning: Repaying loans is not the borrowers’ responsibility, but doubtless you think lenders should keep lending.

So then you won’t mind sending me a cashier’s check for your net worth, as a loan that won’t be repaid. I am waiting.

[patientrenter]

Supply and demand determine price. That’s true for peanuts and also for assets, like stocks and homes.

The aggregate demand for investment assets is total domestic savings plus imported savings, which is equal to the trade deficit. The aggregate supply of investment assets is all the houses we build, and new companies we fund, and new investment by existing companies, etc.

Supply of investment assets:
Since the 1980’s or even earlier, the US has needed about 10% of its GDP to be devoted to investments. It used to be higher when increases in our productivity were driven primarily by supplying workers with more and better machinery. Since we’ve become more focused on intellectual work, our productivity is enhanced most by education and knowledge and training in general. And that takes less capital.

Demand for investment assets (=savings):
Our trade deficit has been large for a long time, and increased significantly with China’s recent explosive economic growth. By 2007, this supply of savings from abroad looking for US assets amounted to about 5% of our GDP annually, or half of our entire annual supply of investment assets.

Whenever you have too much money chasing too few goods, you get inflation. And this mismatch between total savings and available domestic investment opportunities, driven by trade deficits and the lower need for traditional investment in our knowledge-driven economy, is at the heart of our asset bubbles. Until we deal with the causes of the mismatch, we will only be moving bubbles from one asset class to another, or re-inflating the ones that pop.

[patientrenter]

Supply and demand determine price. That’s true for peanuts and also for assets, like stocks and homes.

The aggregate demand for investment assets is total domestic savings plus imported savings, which is equal to the trade deficit. The aggregate supply of investment assets is all the houses we build, and new companies we fund, and new investment by existing companies, etc.

Supply of investment assets:
Since the 1980’s or even earlier, the US has needed about 10% of its GDP to be devoted to investments. It used to be higher when increases in our productivity were driven primarily by supplying workers with more and better machinery. Since we’ve become more focused on intellectual work, our productivity is enhanced most by education and knowledge and training in general. And that takes less capital.

Demand for investment assets (=savings):
Our trade deficit has been large for a long time, and increased significantly with China’s recent explosive economic growth. By 2007, this supply of savings from abroad looking for US assets amounted to about 5% of our GDP annually, or half of our entire annual supply of investment assets.

Whenever you have too much money chasing too few goods, you get inflation. And this mismatch between total savings and available domestic investment opportunities, driven by trade deficits and the lower need for traditional investment in our knowledge-driven economy, is at the heart of our asset bubbles. Until we deal with the causes of the mismatch, we will only be moving bubbles from one asset class to another, or re-inflating the ones that pop.

[patientrenter]

Supply and demand determine price. That’s true for peanuts and also for assets, like stocks and homes.

The aggregate demand for investment assets is total domestic savings plus imported savings, which is equal to the trade deficit. The aggregate supply of investment assets is all the houses we build, and new companies we fund, and new investment by existing companies, etc.

Supply of investment assets:
Since the 1980’s or even earlier, the US has needed about 10% of its GDP to be devoted to investments. It used to be higher when increases in our productivity were driven primarily by supplying workers with more and better machinery. Since we’ve become more focused on intellectual work, our productivity is enhanced most by education and knowledge and training in general. And that takes less capital.

Demand for investment assets (=savings):
Our trade deficit has been large for a long time, and increased significantly with China’s recent explosive economic growth. By 2007, this supply of savings from abroad looking for US assets amounted to about 5% of our GDP annually, or half of our entire annual supply of investment assets.

Whenever you have too much money chasing too few goods, you get inflation. And this mismatch between total savings and available domestic investment opportunities, driven by trade deficits and the lower need for traditional investment in our knowledge-driven economy, is at the heart of our asset bubbles. Until we deal with the causes of the mismatch, we will only be moving bubbles from one asset class to another, or re-inflating the ones that pop.

[patientrenter]

Supply and demand determine price. That’s true for peanuts and also for assets, like stocks and homes.

The aggregate demand for investment assets is total domestic savings plus imported savings, which is equal to the trade deficit. The aggregate supply of investment assets is all the houses we build, and new companies we fund, and new investment by existing companies, etc.

Supply of investment assets:
Since the 1980’s or even earlier, the US has needed about 10% of its GDP to be devoted to investments. It used to be higher when increases in our productivity were driven primarily by supplying workers with more and better machinery. Since we’ve become more focused on intellectual work, our productivity is enhanced most by education and knowledge and training in general. And that takes less capital.

Demand for investment assets (=savings):
Our trade deficit has been large for a long time, and increased significantly with China’s recent explosive economic growth. By 2007, this supply of savings from abroad looking for US assets amounted to about 5% of our GDP annually, or half of our entire annual supply of investment assets.

Whenever you have too much money chasing too few goods, you get inflation. And this mismatch between total savings and available domestic investment opportunities, driven by trade deficits and the lower need for traditional investment in our knowledge-driven economy, is at the heart of our asset bubbles. Until we deal with the causes of the mismatch, we will only be moving bubbles from one asset class to another, or re-inflating the ones that pop.

[patientrenter]

Supply and demand determine price. That’s true for peanuts and also for assets, like stocks and homes.

The aggregate demand for investment assets is total domestic savings plus imported savings, which is equal to the trade deficit. The aggregate supply of investment assets is all the houses we build, and new companies we fund, and new investment by existing companies, etc.

Supply of investment assets:
Since the 1980’s or even earlier, the US has needed about 10% of its GDP to be devoted to investments. It used to be higher when increases in our productivity were driven primarily by supplying workers with more and better machinery. Since we’ve become more focused on intellectual work, our productivity is enhanced most by education and knowledge and training in general. And that takes less capital.

Demand for investment assets (=savings):
Our trade deficit has been large for a long time, and increased significantly with China’s recent explosive economic growth. By 2007, this supply of savings from abroad looking for US assets amounted to about 5% of our GDP annually, or half of our entire annual supply of investment assets.

Whenever you have too much money chasing too few goods, you get inflation. And this mismatch between total savings and available domestic investment opportunities, driven by trade deficits and the lower need for traditional investment in our knowledge-driven economy, is at the heart of our asset bubbles. Until we deal with the causes of the mismatch, we will only be moving bubbles from one asset class to another, or re-inflating the ones that pop.

[patientrenter]

[quote=DWCAP]…
Why? Why should they have? ….
Please define the reasons for “should”.[/quote]

Why argue with SK in CV? I like his (or her) reasoning. Using it, I can now quit being prudent. I can buy the home I ‘deserve’, without paying for it. And I would like to own a Ferrari. Until now, I thought that would be a bit extravagant. But if I don’t have to pay for it, it’s quite sensible to go get one. I could go on, but I think you can see how SK in CV’s world is wonderful.

His argument is quite respectable these days. Ben Bernanke agrees, as does Larry Summers, and Tim Geithner, and Barney Frank, and so on. How is it being sold to the general public? Well, if we don’t do this, our banking system will collapse, and if that happens our economy will collapse. So there’s a good reason to do these things that are counter to our own commonsense. We troglodytes with our dull commonsense are too stupid to understand what these financial wizards understand. Never mind that these wizards were cheering as the bubble inflated and trillions in bad loans were being made.

[patientrenter]

[quote=DWCAP]…
Why? Why should they have? ….
Please define the reasons for “should”.[/quote]

Why argue with SK in CV? I like his (or her) reasoning. Using it, I can now quit being prudent. I can buy the home I ‘deserve’, without paying for it. And I would like to own a Ferrari. Until now, I thought that would be a bit extravagant. But if I don’t have to pay for it, it’s quite sensible to go get one. I could go on, but I think you can see how SK in CV’s world is wonderful.

His argument is quite respectable these days. Ben Bernanke agrees, as does Larry Summers, and Tim Geithner, and Barney Frank, and so on. How is it being sold to the general public? Well, if we don’t do this, our banking system will collapse, and if that happens our economy will collapse. So there’s a good reason to do these things that are counter to our own commonsense. We troglodytes with our dull commonsense are too stupid to understand what these financial wizards understand. Never mind that these wizards were cheering as the bubble inflated and trillions in bad loans were being made.

[patientrenter]

[quote=DWCAP]…
Why? Why should they have? ….
Please define the reasons for “should”.[/quote]

Why argue with SK in CV? I like his (or her) reasoning. Using it, I can now quit being prudent. I can buy the home I ‘deserve’, without paying for it. And I would like to own a Ferrari. Until now, I thought that would be a bit extravagant. But if I don’t have to pay for it, it’s quite sensible to go get one. I could go on, but I think you can see how SK in CV’s world is wonderful.

His argument is quite respectable these days. Ben Bernanke agrees, as does Larry Summers, and Tim Geithner, and Barney Frank, and so on. How is it being sold to the general public? Well, if we don’t do this, our banking system will collapse, and if that happens our economy will collapse. So there’s a good reason to do these things that are counter to our own commonsense. We troglodytes with our dull commonsense are too stupid to understand what these financial wizards understand. Never mind that these wizards were cheering as the bubble inflated and trillions in bad loans were being made.

[patientrenter]

[quote=DWCAP]…
Why? Why should they have? ….
Please define the reasons for “should”.[/quote]

Why argue with SK in CV? I like his (or her) reasoning. Using it, I can now quit being prudent. I can buy the home I ‘deserve’, without paying for it. And I would like to own a Ferrari. Until now, I thought that would be a bit extravagant. But if I don’t have to pay for it, it’s quite sensible to go get one. I could go on, but I think you can see how SK in CV’s world is wonderful.

His argument is quite respectable these days. Ben Bernanke agrees, as does Larry Summers, and Tim Geithner, and Barney Frank, and so on. How is it being sold to the general public? Well, if we don’t do this, our banking system will collapse, and if that happens our economy will collapse. So there’s a good reason to do these things that are counter to our own commonsense. We troglodytes with our dull commonsense are too stupid to understand what these financial wizards understand. Never mind that these wizards were cheering as the bubble inflated and trillions in bad loans were being made.

[patientrenter]

[quote=DWCAP]…
Why? Why should they have? ….
Please define the reasons for “should”.[/quote]

Why argue with SK in CV? I like his (or her) reasoning. Using it, I can now quit being prudent. I can buy the home I ‘deserve’, without paying for it. And I would like to own a Ferrari. Until now, I thought that would be a bit extravagant. But if I don’t have to pay for it, it’s quite sensible to go get one. I could go on, but I think you can see how SK in CV’s world is wonderful.

His argument is quite respectable these days. Ben Bernanke agrees, as does Larry Summers, and Tim Geithner, and Barney Frank, and so on. How is it being sold to the general public? Well, if we don’t do this, our banking system will collapse, and if that happens our economy will collapse. So there’s a good reason to do these things that are counter to our own commonsense. We troglodytes with our dull commonsense are too stupid to understand what these financial wizards understand. Never mind that these wizards were cheering as the bubble inflated and trillions in bad loans were being made.

[patientrenter]

[quote=paramount]….Will these realtor’s ever stop with the BS?[/quote]

No.

Blah, blah, blah… The bottom is behind us… There are more buyers than sellers…. Buyers have wheelbarrows of cash they want to throw away… It’s a
good time to buy. It’s always a good time to buy.

[Author]

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