[permabear]

[quote=CA renter]Interesting…I also heard that one of the biggest banks has gotten some sort of authorization to hold inventory off the market for five years. They aren’t even going to rent them out, apparently. They are going to board them up and maintain them for five years. [/quote]

It would not surprise me based on history. In the Great Depression 1.0, people were actually paid to knock down homes in order to rid communities of dilapidated properties inhabited by squatters. Plus, it helped reduce inventory.

The modern equivalent that banks are now undertaking is to make homes unavailable – vacant – basically the same thing, assuming the banks can carry the costs. In the Great Depression 1.0, banks went out of business, which rendered that approach moot.

[permabear]

[quote=CA renter]Interesting…I also heard that one of the biggest banks has gotten some sort of authorization to hold inventory off the market for five years. They aren’t even going to rent them out, apparently. They are going to board them up and maintain them for five years. [/quote]

It would not surprise me based on history. In the Great Depression 1.0, people were actually paid to knock down homes in order to rid communities of dilapidated properties inhabited by squatters. Plus, it helped reduce inventory.

The modern equivalent that banks are now undertaking is to make homes unavailable – vacant – basically the same thing, assuming the banks can carry the costs. In the Great Depression 1.0, banks went out of business, which rendered that approach moot.

[permabear]

[quote=CA renter]Interesting…I also heard that one of the biggest banks has gotten some sort of authorization to hold inventory off the market for five years. They aren’t even going to rent them out, apparently. They are going to board them up and maintain them for five years. [/quote]

It would not surprise me based on history. In the Great Depression 1.0, people were actually paid to knock down homes in order to rid communities of dilapidated properties inhabited by squatters. Plus, it helped reduce inventory.

The modern equivalent that banks are now undertaking is to make homes unavailable – vacant – basically the same thing, assuming the banks can carry the costs. In the Great Depression 1.0, banks went out of business, which rendered that approach moot.

[permabear]

Luckily, there’s actual data available on this topic: http://rwer.wordpress.com/2010/09/21/5-graphs-on-income-inequality-and-the-great-recession/

Everyone loves to argue opinions on both sides. The fact is: income inequality leads to major economic issues. And currently, there is massive wealth concentration in the US.

Really, it is that simple. Sorry to disappoint those calling for deregulation and lower taxes on the rich.

Now, what IS a valid discussion is what classifies as “rich”. During the early 1900’s, the top tax bracket was $2M. And that was 100+ years ago. I think there is compelling evidence that lowering the top bracket to $250k was an intentional act to get upper-middle-class people on the same side as the actual rich.

$1M in 1910 = $22.7M in 2009, and $2M in 1910 = $45.4M in 2009. Food for thought…

[permabear]

Luckily, there’s actual data available on this topic: http://rwer.wordpress.com/2010/09/21/5-graphs-on-income-inequality-and-the-great-recession/

Everyone loves to argue opinions on both sides. The fact is: income inequality leads to major economic issues. And currently, there is massive wealth concentration in the US.

Really, it is that simple. Sorry to disappoint those calling for deregulation and lower taxes on the rich.

Now, what IS a valid discussion is what classifies as “rich”. During the early 1900’s, the top tax bracket was $2M. And that was 100+ years ago. I think there is compelling evidence that lowering the top bracket to $250k was an intentional act to get upper-middle-class people on the same side as the actual rich.

$1M in 1910 = $22.7M in 2009, and $2M in 1910 = $45.4M in 2009. Food for thought…

[permabear]

Luckily, there’s actual data available on this topic: http://rwer.wordpress.com/2010/09/21/5-graphs-on-income-inequality-and-the-great-recession/

Everyone loves to argue opinions on both sides. The fact is: income inequality leads to major economic issues. And currently, there is massive wealth concentration in the US.

Really, it is that simple. Sorry to disappoint those calling for deregulation and lower taxes on the rich.

Now, what IS a valid discussion is what classifies as “rich”. During the early 1900’s, the top tax bracket was $2M. And that was 100+ years ago. I think there is compelling evidence that lowering the top bracket to $250k was an intentional act to get upper-middle-class people on the same side as the actual rich.

$1M in 1910 = $22.7M in 2009, and $2M in 1910 = $45.4M in 2009. Food for thought…

[permabear]

Luckily, there’s actual data available on this topic: http://rwer.wordpress.com/2010/09/21/5-graphs-on-income-inequality-and-the-great-recession/

Everyone loves to argue opinions on both sides. The fact is: income inequality leads to major economic issues. And currently, there is massive wealth concentration in the US.

Really, it is that simple. Sorry to disappoint those calling for deregulation and lower taxes on the rich.

Now, what IS a valid discussion is what classifies as “rich”. During the early 1900’s, the top tax bracket was $2M. And that was 100+ years ago. I think there is compelling evidence that lowering the top bracket to $250k was an intentional act to get upper-middle-class people on the same side as the actual rich.

$1M in 1910 = $22.7M in 2009, and $2M in 1910 = $45.4M in 2009. Food for thought…

[permabear]

Luckily, there’s actual data available on this topic: http://rwer.wordpress.com/2010/09/21/5-graphs-on-income-inequality-and-the-great-recession/

Everyone loves to argue opinions on both sides. The fact is: income inequality leads to major economic issues. And currently, there is massive wealth concentration in the US.

Really, it is that simple. Sorry to disappoint those calling for deregulation and lower taxes on the rich.

Now, what IS a valid discussion is what classifies as “rich”. During the early 1900’s, the top tax bracket was $2M. And that was 100+ years ago. I think there is compelling evidence that lowering the top bracket to $250k was an intentional act to get upper-middle-class people on the same side as the actual rich.

$1M in 1910 = $22.7M in 2009, and $2M in 1910 = $45.4M in 2009. Food for thought…

[permabear]

[quote=urbanrealtor]Dumping money into banks (thus raising monetary base) can’t really change aggregate demand by itself. If we see inflation, it will be one of 2 distinct animals:

1: as part of the cost-push (reference by CAR above) with commodity and exchange prices pushing us into greater brokeness
or
2: as part of an intentional effort to reduce effective debt burdens[/quote]

Door #2 is on. There’s an outright currency devaluation war that’s currently playing out. Hence the spike in Gold.

If all the industrialized countries continue on their race to devaluation, we could suddenly see overnight hyperinflationary gap-ups. When this happened in the 1920’s in Europe, it was a major influence on Keynes.

[quote=Wikipedia]John Maynard Keynes: “The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance.”[/quote]

Geee…. doesn’t sound familiar at all.

If this happens the way governments are trying desperately to make it happen, housing prices could remain where they are, but sudden inflationary gaps could make up the difference.

The system is really, really stacked against the responsible people right now.

[permabear]

[quote=urbanrealtor]Dumping money into banks (thus raising monetary base) can’t really change aggregate demand by itself. If we see inflation, it will be one of 2 distinct animals:

1: as part of the cost-push (reference by CAR above) with commodity and exchange prices pushing us into greater brokeness
or
2: as part of an intentional effort to reduce effective debt burdens[/quote]

Door #2 is on. There’s an outright currency devaluation war that’s currently playing out. Hence the spike in Gold.

If all the industrialized countries continue on their race to devaluation, we could suddenly see overnight hyperinflationary gap-ups. When this happened in the 1920’s in Europe, it was a major influence on Keynes.

[quote=Wikipedia]John Maynard Keynes: “The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance.”[/quote]

Geee…. doesn’t sound familiar at all.

If this happens the way governments are trying desperately to make it happen, housing prices could remain where they are, but sudden inflationary gaps could make up the difference.

The system is really, really stacked against the responsible people right now.

[permabear]

[quote=urbanrealtor]Dumping money into banks (thus raising monetary base) can’t really change aggregate demand by itself. If we see inflation, it will be one of 2 distinct animals:

1: as part of the cost-push (reference by CAR above) with commodity and exchange prices pushing us into greater brokeness
or
2: as part of an intentional effort to reduce effective debt burdens[/quote]

Door #2 is on. There’s an outright currency devaluation war that’s currently playing out. Hence the spike in Gold.

If all the industrialized countries continue on their race to devaluation, we could suddenly see overnight hyperinflationary gap-ups. When this happened in the 1920’s in Europe, it was a major influence on Keynes.

[quote=Wikipedia]John Maynard Keynes: “The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance.”[/quote]

Geee…. doesn’t sound familiar at all.

If this happens the way governments are trying desperately to make it happen, housing prices could remain where they are, but sudden inflationary gaps could make up the difference.

The system is really, really stacked against the responsible people right now.

[permabear]

[quote=urbanrealtor]Dumping money into banks (thus raising monetary base) can’t really change aggregate demand by itself. If we see inflation, it will be one of 2 distinct animals:

1: as part of the cost-push (reference by CAR above) with commodity and exchange prices pushing us into greater brokeness
or
2: as part of an intentional effort to reduce effective debt burdens[/quote]

Door #2 is on. There’s an outright currency devaluation war that’s currently playing out. Hence the spike in Gold.

If all the industrialized countries continue on their race to devaluation, we could suddenly see overnight hyperinflationary gap-ups. When this happened in the 1920’s in Europe, it was a major influence on Keynes.

[quote=Wikipedia]John Maynard Keynes: “The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance.”[/quote]

Geee…. doesn’t sound familiar at all.

If this happens the way governments are trying desperately to make it happen, housing prices could remain where they are, but sudden inflationary gaps could make up the difference.

The system is really, really stacked against the responsible people right now.

[permabear]

[quote=urbanrealtor]Dumping money into banks (thus raising monetary base) can’t really change aggregate demand by itself. If we see inflation, it will be one of 2 distinct animals:

1: as part of the cost-push (reference by CAR above) with commodity and exchange prices pushing us into greater brokeness
or
2: as part of an intentional effort to reduce effective debt burdens[/quote]

Door #2 is on. There’s an outright currency devaluation war that’s currently playing out. Hence the spike in Gold.

If all the industrialized countries continue on their race to devaluation, we could suddenly see overnight hyperinflationary gap-ups. When this happened in the 1920’s in Europe, it was a major influence on Keynes.

[quote=Wikipedia]John Maynard Keynes: “The inflationism of the currency systems of Europe has proceeded to extraordinary lengths. The various belligerent Governments, unable, or too timid or too short-sighted to secure from loans or taxes the resources they required, have printed notes for the balance.”[/quote]

Geee…. doesn’t sound familiar at all.

If this happens the way governments are trying desperately to make it happen, housing prices could remain where they are, but sudden inflationary gaps could make up the difference.

The system is really, really stacked against the responsible people right now.

[permabear]

[quote=HomeShopping]Nice interior upgrades, full golf course view of hole 1. If someone can get this one for around $1.2 million, that would be a pretty good deal.[/quote]

Nah, that’s not a deal. At all. That sold for $1,045,000 in 2003.

THIS is a deal:

http://www.redfin.com/CA/San-Diego/7828-Santaluz-Inlt-92127/home/7447454

Sold for $2.53M in 2007, just resold for $1.45M. So basically, a $1M discount.

[permabear]

[quote=HomeShopping]Nice interior upgrades, full golf course view of hole 1. If someone can get this one for around $1.2 million, that would be a pretty good deal.[/quote]

Nah, that’s not a deal. At all. That sold for $1,045,000 in 2003.

THIS is a deal:

http://www.redfin.com/CA/San-Diego/7828-Santaluz-Inlt-92127/home/7447454

Sold for $2.53M in 2007, just resold for $1.45M. So basically, a $1M discount.

[Author]

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