[Sandi Egan]

Deal Hunter wrote: Technically, there is a way to escape debt. In 1929, the government stepped in and paid it off for everyone.
Mean Reversion wrote: It will be paid in full. But the value may not be the same.

That’s exactly my point, guys. It has to be paid, either by the debtors, by the creditors or by the government ( which means the rest of us through taxes and inflation). Apparently, each party will have to pay some of it. We will see who will end up with the lion’s share.
Because the enormous amount of debt, I don’t believe it’s possible to write it all down through inflation – that will cause even worse problems. Even BB understands that (although he pretends he doesn’t).

[Sandi Egan]

I think the main downforce for areas like CV, LJ and others is the price decline in nearby zip codes. If you can buy similar house one freeway exit away and it will cost you 30-40% less, you’ve GOT to consider that.
Prices in Penasquitos, Encinitas, Mira Mesa and other areas will eventually pull CV prices down. That, apparently, does take time.

[Sandi Egan]

I think the main downforce for areas like CV, LJ and others is the price decline in nearby zip codes. If you can buy similar house one freeway exit away and it will cost you 30-40% less, you’ve GOT to consider that.
Prices in Penasquitos, Encinitas, Mira Mesa and other areas will eventually pull CV prices down. That, apparently, does take time.

[Sandi Egan]

I think the main downforce for areas like CV, LJ and others is the price decline in nearby zip codes. If you can buy similar house one freeway exit away and it will cost you 30-40% less, you’ve GOT to consider that.
Prices in Penasquitos, Encinitas, Mira Mesa and other areas will eventually pull CV prices down. That, apparently, does take time.

[Sandi Egan]

I think the main downforce for areas like CV, LJ and others is the price decline in nearby zip codes. If you can buy similar house one freeway exit away and it will cost you 30-40% less, you’ve GOT to consider that.
Prices in Penasquitos, Encinitas, Mira Mesa and other areas will eventually pull CV prices down. That, apparently, does take time.

[Sandi Egan]

I think the main downforce for areas like CV, LJ and others is the price decline in nearby zip codes. If you can buy similar house one freeway exit away and it will cost you 30-40% less, you’ve GOT to consider that.
Prices in Penasquitos, Encinitas, Mira Mesa and other areas will eventually pull CV prices down. That, apparently, does take time.

[Sandi Egan]

Mean,

I agree that the govt is trying to outprint the deflation. I don’t think that’s possible, though: if they print enough to stop the deflation, the people will not be able to buy food with their current incomes. There is just to much debt to cover, IMO.
And boomers – with their fixed incomes – will be hit the most by the inflationary policy.

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

[Sandi Egan]

Mean,

I agree that the govt is trying to outprint the deflation. I don’t think that’s possible, though: if they print enough to stop the deflation, the people will not be able to buy food with their current incomes. There is just to much debt to cover, IMO.
And boomers – with their fixed incomes – will be hit the most by the inflationary policy.

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

[Sandi Egan]

Mean,

I agree that the govt is trying to outprint the deflation. I don’t think that’s possible, though: if they print enough to stop the deflation, the people will not be able to buy food with their current incomes. There is just to much debt to cover, IMO.
And boomers – with their fixed incomes – will be hit the most by the inflationary policy.

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

[Sandi Egan]

Mean,

I agree that the govt is trying to outprint the deflation. I don’t think that’s possible, though: if they print enough to stop the deflation, the people will not be able to buy food with their current incomes. There is just to much debt to cover, IMO.
And boomers – with their fixed incomes – will be hit the most by the inflationary policy.

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

[Sandi Egan]

Mean,

I agree that the govt is trying to outprint the deflation. I don’t think that’s possible, though: if they print enough to stop the deflation, the people will not be able to buy food with their current incomes. There is just to much debt to cover, IMO.
And boomers – with their fixed incomes – will be hit the most by the inflationary policy.

Either way, I don’t believe it’s possible to escape debt. One way or another it will be paid in full. The question is, who is going to pay it.

[Sandi Egan]

HLS and Contaman,

Thanks for detailed explanations. This topic is now saved in my favorites.

I have two questions.

1. What is an impound account?
2. How substantial the financial reserves should be (after 20% down is paid)?

[Sandi Egan]

HLS and Contaman,

Thanks for detailed explanations. This topic is now saved in my favorites.

I have two questions.

1. What is an impound account?
2. How substantial the financial reserves should be (after 20% down is paid)?

[Sandi Egan]

HLS and Contaman,

Thanks for detailed explanations. This topic is now saved in my favorites.

I have two questions.

1. What is an impound account?
2. How substantial the financial reserves should be (after 20% down is paid)?

[Sandi Egan]

HLS and Contaman,

Thanks for detailed explanations. This topic is now saved in my favorites.

I have two questions.

1. What is an impound account?
2. How substantial the financial reserves should be (after 20% down is paid)?

[Author]

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