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May 30, 2009 at 10:17 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #407739May 30, 2009 at 10:17 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #407981
peterb
ParticipantInflation as it relates to price increases is by no means a lock right now. Maybe in a few years, but not now. The velocity of money is tanking. Credit being pulled and unemployment rising. There’s no where for the money to go. J6p is saturated with debt and the USG is getting there real fast as well.
May 30, 2009 at 10:17 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #408043ParticipantInflation as it relates to price increases is by no means a lock right now. Maybe in a few years, but not now. The velocity of money is tanking. Credit being pulled and unemployment rising. There’s no where for the money to go. J6p is saturated with debt and the USG is getting there real fast as well.
May 30, 2009 at 10:17 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #408191ParticipantInflation as it relates to price increases is by no means a lock right now. Maybe in a few years, but not now. The velocity of money is tanking. Credit being pulled and unemployment rising. There’s no where for the money to go. J6p is saturated with debt and the USG is getting there real fast as well.
ParticipantI think you should check your history a little more closely.Gold was $22/oz in 1925. It’s now $950/oz. Take out the anomolies of spikes and just look at the long term rise in value. It’s real money. Geopolitical and economic uncertainty can cause it to spike, but overall time spans show it’s a great hedge against fiat currencies.
ParticipantI think you should check your history a little more closely.Gold was $22/oz in 1925. It’s now $950/oz. Take out the anomolies of spikes and just look at the long term rise in value. It’s real money. Geopolitical and economic uncertainty can cause it to spike, but overall time spans show it’s a great hedge against fiat currencies.
ParticipantI think you should check your history a little more closely.Gold was $22/oz in 1925. It’s now $950/oz. Take out the anomolies of spikes and just look at the long term rise in value. It’s real money. Geopolitical and economic uncertainty can cause it to spike, but overall time spans show it’s a great hedge against fiat currencies.
ParticipantI think you should check your history a little more closely.Gold was $22/oz in 1925. It’s now $950/oz. Take out the anomolies of spikes and just look at the long term rise in value. It’s real money. Geopolitical and economic uncertainty can cause it to spike, but overall time spans show it’s a great hedge against fiat currencies.
ParticipantI think you should check your history a little more closely.Gold was $22/oz in 1925. It’s now $950/oz. Take out the anomolies of spikes and just look at the long term rise in value. It’s real money. Geopolitical and economic uncertainty can cause it to spike, but overall time spans show it’s a great hedge against fiat currencies.
May 30, 2009 at 9:04 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #407461ParticipantI think we’ll be lucky to have the Japanese scenario unfold here in the US. Dont forget, Japan was still selling a lot of their products to the world as their credit markets were zombified. We dont have that luxury. We have wage arbitration keeping a solid lid on income/job growth in the US while at the same time credit is being constricted.
Put those two factors together when considering the future of home prices in the US. Income stagnation or loss with the constriction of credit. This will probably keep downward pressure on home prices for quite a while.
May 30, 2009 at 9:04 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #407704ParticipantI think we’ll be lucky to have the Japanese scenario unfold here in the US. Dont forget, Japan was still selling a lot of their products to the world as their credit markets were zombified. We dont have that luxury. We have wage arbitration keeping a solid lid on income/job growth in the US while at the same time credit is being constricted.
Put those two factors together when considering the future of home prices in the US. Income stagnation or loss with the constriction of credit. This will probably keep downward pressure on home prices for quite a while.
May 30, 2009 at 9:04 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #407946ParticipantI think we’ll be lucky to have the Japanese scenario unfold here in the US. Dont forget, Japan was still selling a lot of their products to the world as their credit markets were zombified. We dont have that luxury. We have wage arbitration keeping a solid lid on income/job growth in the US while at the same time credit is being constricted.
Put those two factors together when considering the future of home prices in the US. Income stagnation or loss with the constriction of credit. This will probably keep downward pressure on home prices for quite a while.
May 30, 2009 at 9:04 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #408008ParticipantI think we’ll be lucky to have the Japanese scenario unfold here in the US. Dont forget, Japan was still selling a lot of their products to the world as their credit markets were zombified. We dont have that luxury. We have wage arbitration keeping a solid lid on income/job growth in the US while at the same time credit is being constricted.
Put those two factors together when considering the future of home prices in the US. Income stagnation or loss with the constriction of credit. This will probably keep downward pressure on home prices for quite a while.
May 30, 2009 at 9:04 AM in reply to: The past doesn’t repeat but it Rhymes: Lessons from Japans Financial Crisis #408156ParticipantI think we’ll be lucky to have the Japanese scenario unfold here in the US. Dont forget, Japan was still selling a lot of their products to the world as their credit markets were zombified. We dont have that luxury. We have wage arbitration keeping a solid lid on income/job growth in the US while at the same time credit is being constricted.
Put those two factors together when considering the future of home prices in the US. Income stagnation or loss with the constriction of credit. This will probably keep downward pressure on home prices for quite a while.
ParticipantInterest rates will effect home prices based on the level of income from a job that will allow the debt to be reliably serviced.
High rates can only be reliably serviced if the actual dollar cost is low enough in relationship to the income. Thus, high rates in the 1980’s could be sustained because the amounts of the loans were low enough to allow the debt to be reliably serviced/maintained.
Today’s income levels absolutely do not allow for this scenario to take place. If rates rise, prices must come down.
Rates usually rise with an improving economy. I doubt we’ll have an improving economy for quite sometime to come. -
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