[SHILOH]

I am a real novice, but it seems to me that even though the bubble expanded mostly over 5 years,
it appears from history and from the condition of the financial markets, with the “revelation” of the risk in the MBS and CDOs that it will take longer that 5 years to deflate. It would seem that the wage/income to price disparity would cause flat or declining prices past 5 years, unless people start making more than $69K per household – but how is that going to happen? When most of the jobs pushing the bubble were financial services or construction related. If the economy slows –and credit becomes tighter and more expensive, this is bound to go beyond 5 years.

[SHILOH]

I am a real novice, but it seems to me that even though the bubble expanded mostly over 5 years,
it appears from history and from the condition of the financial markets, with the “revelation” of the risk in the MBS and CDOs that it will take longer that 5 years to deflate. It would seem that the wage/income to price disparity would cause flat or declining prices past 5 years, unless people start making more than $69K per household – but how is that going to happen? When most of the jobs pushing the bubble were financial services or construction related. If the economy slows –and credit becomes tighter and more expensive, this is bound to go beyond 5 years.

[SHILOH]

When they are talking about GDP growth –in goods and services –is the growth in financial services or IT or what? Who benefits from it?

Despite some of this recorded *growth* it doesn’t change the truth about the growth in wealth disparity and that for most average Americans, technology has improved our standard of living, but wages don’t keep pace –even with inflation.

An analysis of that would bring some truth to what is happening in our economy.

[SHILOH]

When they are talking about GDP growth –in goods and services –is the growth in financial services or IT or what? Who benefits from it?

Despite some of this recorded *growth* it doesn’t change the truth about the growth in wealth disparity and that for most average Americans, technology has improved our standard of living, but wages don’t keep pace –even with inflation.

An analysis of that would bring some truth to what is happening in our economy.

[SHILOH]

When they are talking about GDP growth –in goods and services –is the growth in financial services or IT or what? Who benefits from it?

Despite some of this recorded *growth* it doesn’t change the truth about the growth in wealth disparity and that for most average Americans, technology has improved our standard of living, but wages don’t keep pace –even with inflation.

An analysis of that would bring some truth to what is happening in our economy.

[SHILOH]

When they are talking about GDP growth –in goods and services –is the growth in financial services or IT or what? Who benefits from it?

Despite some of this recorded *growth* it doesn’t change the truth about the growth in wealth disparity and that for most average Americans, technology has improved our standard of living, but wages don’t keep pace –even with inflation.

An analysis of that would bring some truth to what is happening in our economy.

[SHILOH]

I wonder when the surge in urban wealth occurred and where did all the money come from….

also – taxes provide significant $ to expand an economic infrastructure beyond urban centers —

my question would be what % of the population is *enjoying*
the wealth – and what % is the rural poor and specifically –
do the poor have access to contemporary education.

[SHILOH]

I wonder when the surge in urban wealth occurred and where did all the money come from….

also – taxes provide significant $ to expand an economic infrastructure beyond urban centers —

my question would be what % of the population is *enjoying*
the wealth – and what % is the rural poor and specifically –
do the poor have access to contemporary education.

[SHILOH]

I wonder when the surge in urban wealth occurred and where did all the money come from….

also – taxes provide significant $ to expand an economic infrastructure beyond urban centers —

my question would be what % of the population is *enjoying*
the wealth – and what % is the rural poor and specifically –
do the poor have access to contemporary education.

[SHILOH]

I will never believe that Mozillo was ignorant about these kinds of loans – being paid back -consumer awareness, etc, and the effect it had on the buyers, property value….

I think he was banking on the ignorance of it all.

Mozillo is full of *it* and I agree with something said on another post —

People running business like him are just white collar loan sharks except the taxpayers are left holding the bag.

[SHILOH]

I will never believe that Mozillo was ignorant about these kinds of loans – being paid back -consumer awareness, etc, and the effect it had on the buyers, property value….

I think he was banking on the ignorance of it all.

Mozillo is full of *it* and I agree with something said on another post —

People running business like him are just white collar loan sharks except the taxpayers are left holding the bag.

[SHILOH]

I will never believe that Mozillo was ignorant about these kinds of loans – being paid back -consumer awareness, etc, and the effect it had on the buyers, property value….

I think he was banking on the ignorance of it all.

Mozillo is full of *it* and I agree with something said on another post —

People running business like him are just white collar loan sharks except the taxpayers are left holding the bag.

[SHILOH]

It appears we are watching the “affordability” disparity implode everywhere. Logically, if you are spending 10X your income to service a mortgage, what’s left over? The local economy cannot thrive on the 10X income to mortgage disparity. That’s exactly why it’s imploding now, because it was all propped up by faulty credit. This is just the beginning of this bust — while WS looks for another place to create a bubble and suck all the money to the very top.

San Diego is no different than any other place, unless piling 4 “immigrant” families into a 2500 square foot home to service the same mortgage for 50 years is economically sound…. San Diego’s median income does not support the median home price – and fundamentally that is off, which is the basis of Patrick’s blog.

[SHILOH]

It appears we are watching the “affordability” disparity implode everywhere. Logically, if you are spending 10X your income to service a mortgage, what’s left over? The local economy cannot thrive on the 10X income to mortgage disparity. That’s exactly why it’s imploding now, because it was all propped up by faulty credit. This is just the beginning of this bust — while WS looks for another place to create a bubble and suck all the money to the very top.

San Diego is no different than any other place, unless piling 4 “immigrant” families into a 2500 square foot home to service the same mortgage for 50 years is economically sound…. San Diego’s median income does not support the median home price – and fundamentally that is off, which is the basis of Patrick’s blog.

[SHILOH]

who would flip now —and who would lend?

[Author]

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