[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Maybe,

I think it all has to do with (if and or how bad) we get a recession,

A hard recession would go a long way toward clearing out the excesses of this latest bubble.

But the Builders have to eat, to eat they must move inventory (So there is yet another wild card out there).

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

So the real question goes back to June 1st,

“157K job growth and other BED-time fairy tales”

And Why are retailers saying This,

May Sales Weak after a Mediocre April.

And the Goverment this,

stronger than expected Retail Sales report for May.

Hmmm Makes you wonder,

Yes — Don’t fight THE MAN …

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

So the real question goes back to June 1st,

“157K job growth and other BED-time fairy tales”

And Why are retailers saying This,

May Sales Weak after a Mediocre April.

And the Goverment this,

stronger than expected Retail Sales report for May.

Hmmm Makes you wonder,

Yes — Don’t fight THE MAN …

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Like I said, If the Fed calculated inflation like they did in 1978 or 79 , then we would have the (FED) inflation rate of 1978-79 (10-15%) . Eventually the renter has to pay for the house (end of story).

They used the cost to buy in the CPI back in 1978 and 79 .

Which did not leave inflation in the pipe but brought if up front where you could control it with interest rates.

(no hidden inflation)

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Like I said, If the Fed calculated inflation like they did in 1978 or 79 , then we would have the (FED) inflation rate of 1978-79 (10-15%) . Eventually the renter has to pay for the house (end of story).

They used the cost to buy in the CPI back in 1978 and 79 .

Which did not leave inflation in the pipe but brought if up front where you could control it with interest rates.

(no hidden inflation)

[The-Shoveler]

sdduuuude

Think health insurance, most Stuff that can’t be outsourced or done by undocumented workers. then you will see the inflation.

Also compair to other currencies, Australian dollar, Canada currency, euro etc ….

[The-Shoveler]

sdduuuude

Think health insurance, most Stuff that can’t be outsourced or done by undocumented workers. then you will see the inflation.

Also compair to other currencies, Australian dollar, Canada currency, euro etc ….

[The-Shoveler]

sdduuuude

“Am I to assume, then, that my dollar has gone up in value by 2% in the last year?”

Yes maybe after devaluing 10 to 15% the previous several years.

[The-Shoveler]

sdduuuude

“Am I to assume, then, that my dollar has gone up in value by 2% in the last year?”

Yes maybe after devaluing 10 to 15% the previous several years.

[The-Shoveler]

sdduuuude

Eventually rents and cost to buy converge,

That’s why we have a lot of inflation in the pipe that the Fed does not want you to think about,

Before 1980 the cost to buy was part of the Fed’s CPI,
Now it was replaced by owner equivalent rent.

If rents do not rise or cost of buying a home does not come down —- No one will ever build an appartment for renting ever again…. Think about it a few minutes, it will soak in.

[The-Shoveler]

sdduuuude

Eventually rents and cost to buy converge,

That’s why we have a lot of inflation in the pipe that the Fed does not want you to think about,

Before 1980 the cost to buy was part of the Fed’s CPI,
Now it was replaced by owner equivalent rent.

If rents do not rise or cost of buying a home does not come down —- No one will ever build an appartment for renting ever again…. Think about it a few minutes, it will soak in.

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Before 1981-4 (can’t remember the exact date) the cost to buy a house was included in the CPI, so really we are experiencing inflation of the 1970’s if you calculate it the same way we/they did in the 1970’s, so 10 to 15% is not that far off I believe.

Also eventually rents do meet the cost to buy (within 10-25%)
(Assume 20% down 30 year fixed as your base)

So there is a lot of inflation in the pipe the Fed wants you to ignore …

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Before 1981-4 (can’t remember the exact date) the cost to buy a house was included in the CPI, so really we are experiencing inflation of the 1970’s if you calculate it the same way we/they did in the 1970’s, so 10 to 15% is not that far off I believe.

Also eventually rents do meet the cost to buy (within 10-25%)
(Assume 20% down 30 year fixed as your base)

So there is a lot of inflation in the pipe the Fed wants you to ignore …

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Interest rates going up big time last few days, The 30 year mortgage now around 6.7% (getting close to 7% here) (Interest rates have still a long way up to go from here IMO).

Lenders tightening ,

More Foreclosures coming soon me thinks

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Interest rates going up big time last few days, The 30 year mortgage now around 6.7% (getting close to 7% here) (Interest rates have still a long way up to go from here IMO).

Lenders tightening ,

More Foreclosures coming soon me thinks

[Author]

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