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patientrenter,
The value of the currency is everything. That’s why the Fed has complete control over it. Interest rates control it’s value as does the money supply itself. It all comes down to how much labor is what currency going to buy. If you understand this, you understand the forces which control the value of money.

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sdduuuude,
Money is simply an exchange medium. What a dollar will buy in housing is not equivalent to what it will by in other sectors of the economy because lots of dollars are available for housing. So there is, albeit virtually, a housing dollar. The dollar can decline (in value) versus other currencies yet still buy more house (in the U.S.).

Again, money is another way to express the value of the house. As the money supply goes up or down, the currency (used to buy housing) inflates (worth less)/deflates (worth more).

Btw, your insults fail to aid your arguments.

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sdduuuude,
Money is simply an exchange medium. What a dollar will buy in housing is not equivalent to what it will by in other sectors of the economy because lots of dollars are available for housing. So there is, albeit virtually, a housing dollar. The dollar can decline (in value) versus other currencies yet still buy more house (in the U.S.).

Again, money is another way to express the value of the house. As the money supply goes up or down, the currency (used to buy housing) inflates (worth less)/deflates (worth more).

Btw, your insults fail to aid your arguments.

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As the money supply increases, the value of the currency decreases. And as the price of housing comes down, the value of the housing dollar does increase (all things being equal).

Currency [dollar defined assets] inflation (increased money supply) is exactly what the housing bubble is.

Capital markets will tighten up and the value of the dollar will continue to decline, but remember, the value of the dollar you refer to is relative to other currencies and commodities. The housing dollar (the amount of house a dollar will purchase) will not decline, it will rise.

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As the money supply increases, the value of the currency decreases. And as the price of housing comes down, the value of the housing dollar does increase (all things being equal).

Currency [dollar defined assets] inflation (increased money supply) is exactly what the housing bubble is.

Capital markets will tighten up and the value of the dollar will continue to decline, but remember, the value of the dollar you refer to is relative to other currencies and commodities. The housing dollar (the amount of house a dollar will purchase) will not decline, it will rise.

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The disconnect between rents and ownership is that nobody is providing capital (creating money) for the renter. Keep in mind that rents are really high too, it just doesn’t seem that way because real estate prices are so absurd. And, as was mentioned, it does work itself out in the long run.

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The disconnect between rents and ownership is that nobody is providing capital (creating money) for the renter. Keep in mind that rents are really high too, it just doesn’t seem that way because real estate prices are so absurd. And, as was mentioned, it does work itself out in the long run.

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By “real value” I meant real value. You are speaking of prices. The availability of capital is a function of the relative value of the currency, albeit indirectly. As capital becomes more available, it’s value decreases, just like everything else. If nobody can borrow money, it has a much greater value. Think about it.

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By “real value” I meant real value. You are speaking of prices. The availability of capital is a function of the relative value of the currency, albeit indirectly. As capital becomes more available, it’s value decreases, just like everything else. If nobody can borrow money, it has a much greater value. Think about it.

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Really bad idea!

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Really bad idea!

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Watch out!

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Watch out!

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Not that I am long on memory, but I remember sitting in front of the Geno’s on West Chester Pike in Havertown (it was near the driving range); I was probably eight or nine, bucket of fried chicken, in my mom’s corvair listening to Bill Cosby’s new album, “Right!”. I remember it so vividly because the guy next to us had it on and he waited the entire time (20 minutes or more) until it was over so we could listen to it. Now how’s that for times being different ‘back in the day.’ I also remember the Frisbee lids and the burgers being 19 cents. I can still picture the 19 cent sign. And that’s when a dollar was still worth 19 cents!

[uncomfortably numb]

Not that I am long on memory, but I remember sitting in front of the Geno’s on West Chester Pike in Havertown (it was near the driving range); I was probably eight or nine, bucket of fried chicken, in my mom’s corvair listening to Bill Cosby’s new album, “Right!”. I remember it so vividly because the guy next to us had it on and he waited the entire time (20 minutes or more) until it was over so we could listen to it. Now how’s that for times being different ‘back in the day.’ I also remember the Frisbee lids and the burgers being 19 cents. I can still picture the 19 cent sign. And that’s when a dollar was still worth 19 cents!

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