[peterb]

Threadkiller makes a very good point that most people on here should listen to. Unemployment! All this talk of ratios of income/prices and rents being less than buying, etc….wont mean a hoot-in-hell if we’re at 10% unemployment.

Try not having a job against those ratio’s and justifications!!! I assure you, they lose every time.

It gets bad enough and we’ll see lots of places that will have a higher rent cost than a mortgage. People are becoming VERY risk averse and this sentiment will grow. That’s when I’ll get interested.

[peterb]

Threadkiller makes a very good point that most people on here should listen to. Unemployment! All this talk of ratios of income/prices and rents being less than buying, etc….wont mean a hoot-in-hell if we’re at 10% unemployment.

Try not having a job against those ratio’s and justifications!!! I assure you, they lose every time.

It gets bad enough and we’ll see lots of places that will have a higher rent cost than a mortgage. People are becoming VERY risk averse and this sentiment will grow. That’s when I’ll get interested.

[peterb]

Threadkiller makes a very good point that most people on here should listen to. Unemployment! All this talk of ratios of income/prices and rents being less than buying, etc….wont mean a hoot-in-hell if we’re at 10% unemployment.

Try not having a job against those ratio’s and justifications!!! I assure you, they lose every time.

It gets bad enough and we’ll see lots of places that will have a higher rent cost than a mortgage. People are becoming VERY risk averse and this sentiment will grow. That’s when I’ll get interested.

[peterb]

Threadkiller makes a very good point that most people on here should listen to. Unemployment! All this talk of ratios of income/prices and rents being less than buying, etc….wont mean a hoot-in-hell if we’re at 10% unemployment.

Try not having a job against those ratio’s and justifications!!! I assure you, they lose every time.

It gets bad enough and we’ll see lots of places that will have a higher rent cost than a mortgage. People are becoming VERY risk averse and this sentiment will grow. That’s when I’ll get interested.

[peterb]

Kwep. I think you’ve hit on what I’ve been thinking as well….we’ve just been through the incredible credit bubble and that WAS the inflationary period. And now we’re headed back to the mean. Since it started, big time in 2002. Then that’s the prices we’re headed towards and we’ll probably over-shoot as most reactions do.
Think about it. Wages did not grow, but the availability of money grew exponentially as debt. The economy was growing entirely on debt to a level where the debt could no longer be sustained. But this was hugely inflationary as it allowed all that extra currency to chase goods and services. Now the debt is going bye-bye and we’re left with real wages to support the price of goods and services. Hence we’re in deflationary pressure. And this feeds on itself as people are unwilling to spend and dont/cant borrow. As well as lenders are hesitant to lend since they just experienced defaults and huge losses. Throw in unemployment fear, and we’re going down this path for a while yet. IMO.

[peterb]

Kwep. I think you’ve hit on what I’ve been thinking as well….we’ve just been through the incredible credit bubble and that WAS the inflationary period. And now we’re headed back to the mean. Since it started, big time in 2002. Then that’s the prices we’re headed towards and we’ll probably over-shoot as most reactions do.
Think about it. Wages did not grow, but the availability of money grew exponentially as debt. The economy was growing entirely on debt to a level where the debt could no longer be sustained. But this was hugely inflationary as it allowed all that extra currency to chase goods and services. Now the debt is going bye-bye and we’re left with real wages to support the price of goods and services. Hence we’re in deflationary pressure. And this feeds on itself as people are unwilling to spend and dont/cant borrow. As well as lenders are hesitant to lend since they just experienced defaults and huge losses. Throw in unemployment fear, and we’re going down this path for a while yet. IMO.

[peterb]

Kwep. I think you’ve hit on what I’ve been thinking as well….we’ve just been through the incredible credit bubble and that WAS the inflationary period. And now we’re headed back to the mean. Since it started, big time in 2002. Then that’s the prices we’re headed towards and we’ll probably over-shoot as most reactions do.
Think about it. Wages did not grow, but the availability of money grew exponentially as debt. The economy was growing entirely on debt to a level where the debt could no longer be sustained. But this was hugely inflationary as it allowed all that extra currency to chase goods and services. Now the debt is going bye-bye and we’re left with real wages to support the price of goods and services. Hence we’re in deflationary pressure. And this feeds on itself as people are unwilling to spend and dont/cant borrow. As well as lenders are hesitant to lend since they just experienced defaults and huge losses. Throw in unemployment fear, and we’re going down this path for a while yet. IMO.

[peterb]

Kwep. I think you’ve hit on what I’ve been thinking as well….we’ve just been through the incredible credit bubble and that WAS the inflationary period. And now we’re headed back to the mean. Since it started, big time in 2002. Then that’s the prices we’re headed towards and we’ll probably over-shoot as most reactions do.
Think about it. Wages did not grow, but the availability of money grew exponentially as debt. The economy was growing entirely on debt to a level where the debt could no longer be sustained. But this was hugely inflationary as it allowed all that extra currency to chase goods and services. Now the debt is going bye-bye and we’re left with real wages to support the price of goods and services. Hence we’re in deflationary pressure. And this feeds on itself as people are unwilling to spend and dont/cant borrow. As well as lenders are hesitant to lend since they just experienced defaults and huge losses. Throw in unemployment fear, and we’re going down this path for a while yet. IMO.

[peterb]

Kwep. I think you’ve hit on what I’ve been thinking as well….we’ve just been through the incredible credit bubble and that WAS the inflationary period. And now we’re headed back to the mean. Since it started, big time in 2002. Then that’s the prices we’re headed towards and we’ll probably over-shoot as most reactions do.
Think about it. Wages did not grow, but the availability of money grew exponentially as debt. The economy was growing entirely on debt to a level where the debt could no longer be sustained. But this was hugely inflationary as it allowed all that extra currency to chase goods and services. Now the debt is going bye-bye and we’re left with real wages to support the price of goods and services. Hence we’re in deflationary pressure. And this feeds on itself as people are unwilling to spend and dont/cant borrow. As well as lenders are hesitant to lend since they just experienced defaults and huge losses. Throw in unemployment fear, and we’re going down this path for a while yet. IMO.

[peterb]

From what I can tell, most people on this site have been waiting for things to come down so that they could buy. Well, it’s happening. If you’ve been responsible with your money and saved, etc…stuffs getting way cheaper than it has been. Seems like a great thing to me! Gas, food, homes. Most goods. I’m liking it! But it’s going to come down more in 2009 and the unemployment part is really going to suck. Sit back and enjoy the show. Dont spend yet.

[peterb]

From what I can tell, most people on this site have been waiting for things to come down so that they could buy. Well, it’s happening. If you’ve been responsible with your money and saved, etc…stuffs getting way cheaper than it has been. Seems like a great thing to me! Gas, food, homes. Most goods. I’m liking it! But it’s going to come down more in 2009 and the unemployment part is really going to suck. Sit back and enjoy the show. Dont spend yet.

[peterb]

From what I can tell, most people on this site have been waiting for things to come down so that they could buy. Well, it’s happening. If you’ve been responsible with your money and saved, etc…stuffs getting way cheaper than it has been. Seems like a great thing to me! Gas, food, homes. Most goods. I’m liking it! But it’s going to come down more in 2009 and the unemployment part is really going to suck. Sit back and enjoy the show. Dont spend yet.

[peterb]

From what I can tell, most people on this site have been waiting for things to come down so that they could buy. Well, it’s happening. If you’ve been responsible with your money and saved, etc…stuffs getting way cheaper than it has been. Seems like a great thing to me! Gas, food, homes. Most goods. I’m liking it! But it’s going to come down more in 2009 and the unemployment part is really going to suck. Sit back and enjoy the show. Dont spend yet.

[peterb]

From what I can tell, most people on this site have been waiting for things to come down so that they could buy. Well, it’s happening. If you’ve been responsible with your money and saved, etc…stuffs getting way cheaper than it has been. Seems like a great thing to me! Gas, food, homes. Most goods. I’m liking it! But it’s going to come down more in 2009 and the unemployment part is really going to suck. Sit back and enjoy the show. Dont spend yet.

[peterb]

A quick inside note on Jolly Roger. A close friend of mine worked for him back in the day when he was mayor. He said, Roger is quick to chime in on almost any subject with an opinion. Even when he hasnt the slightest idea what he’s talking about!! No wonder he makes for a good radio talk show guy.

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