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XBoxBoy
Participant[quote=esmith]We’re paying one of the lowest property taxes in the country, so it’s a wash.[/quote]
So, if you’re an unemployed homeowner, that’s good, this will encourage you to stay. If you’re a highly paid professional who had the sense not to buy in a bubble, it’s bad, and you’ll want to move to another state. Sounds like a good plan to me. (Just sayin’)
XBoxBoy
Participant[quote=esmith]We’re paying one of the lowest property taxes in the country, so it’s a wash.[/quote]
So, if you’re an unemployed homeowner, that’s good, this will encourage you to stay. If you’re a highly paid professional who had the sense not to buy in a bubble, it’s bad, and you’ll want to move to another state. Sounds like a good plan to me. (Just sayin’)
XBoxBoy
December 18, 2008 at 7:17 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317323Participant[quote=KIBU]My question to all of you is how long do you think the Fed can keep rates this low: months, years ???[/quote]
Years. Rates were near zero in Japan for years and years.
[quote=KIBU]Anyway, what’s your opinion on when or what factors will make the Fed having to abandon this bottom rate and increase the rate. After all, come back kid Voelker is coming back. [/quote]
Volker is unlikely to do things significantly different until the situation changes significantly. Volker occasionally spoke out against the government’s policies when the bubble was building but I doubt he is against the low interest rates now that things have gone to hell in a handbag.
The only thing that will cause the fed to change course is if hyperinflation kicks in, or foreign central banks revolt. While both could happen sometime in the future, at this point neither looks likely in the immediate future. My hunch is it will be years before we see a real change in fed policy.
XBoxBoy
December 18, 2008 at 7:17 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317676Participant[quote=KIBU]My question to all of you is how long do you think the Fed can keep rates this low: months, years ???[/quote]
Years. Rates were near zero in Japan for years and years.
[quote=KIBU]Anyway, what’s your opinion on when or what factors will make the Fed having to abandon this bottom rate and increase the rate. After all, come back kid Voelker is coming back. [/quote]
Volker is unlikely to do things significantly different until the situation changes significantly. Volker occasionally spoke out against the government’s policies when the bubble was building but I doubt he is against the low interest rates now that things have gone to hell in a handbag.
The only thing that will cause the fed to change course is if hyperinflation kicks in, or foreign central banks revolt. While both could happen sometime in the future, at this point neither looks likely in the immediate future. My hunch is it will be years before we see a real change in fed policy.
XBoxBoy
December 18, 2008 at 7:17 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317719Participant[quote=KIBU]My question to all of you is how long do you think the Fed can keep rates this low: months, years ???[/quote]
Years. Rates were near zero in Japan for years and years.
[quote=KIBU]Anyway, what’s your opinion on when or what factors will make the Fed having to abandon this bottom rate and increase the rate. After all, come back kid Voelker is coming back. [/quote]
Volker is unlikely to do things significantly different until the situation changes significantly. Volker occasionally spoke out against the government’s policies when the bubble was building but I doubt he is against the low interest rates now that things have gone to hell in a handbag.
The only thing that will cause the fed to change course is if hyperinflation kicks in, or foreign central banks revolt. While both could happen sometime in the future, at this point neither looks likely in the immediate future. My hunch is it will be years before we see a real change in fed policy.
XBoxBoy
December 18, 2008 at 7:17 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317740Participant[quote=KIBU]My question to all of you is how long do you think the Fed can keep rates this low: months, years ???[/quote]
Years. Rates were near zero in Japan for years and years.
[quote=KIBU]Anyway, what’s your opinion on when or what factors will make the Fed having to abandon this bottom rate and increase the rate. After all, come back kid Voelker is coming back. [/quote]
Volker is unlikely to do things significantly different until the situation changes significantly. Volker occasionally spoke out against the government’s policies when the bubble was building but I doubt he is against the low interest rates now that things have gone to hell in a handbag.
The only thing that will cause the fed to change course is if hyperinflation kicks in, or foreign central banks revolt. While both could happen sometime in the future, at this point neither looks likely in the immediate future. My hunch is it will be years before we see a real change in fed policy.
XBoxBoy
December 18, 2008 at 7:17 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317815Participant[quote=KIBU]My question to all of you is how long do you think the Fed can keep rates this low: months, years ???[/quote]
Years. Rates were near zero in Japan for years and years.
[quote=KIBU]Anyway, what’s your opinion on when or what factors will make the Fed having to abandon this bottom rate and increase the rate. After all, come back kid Voelker is coming back. [/quote]
Volker is unlikely to do things significantly different until the situation changes significantly. Volker occasionally spoke out against the government’s policies when the bubble was building but I doubt he is against the low interest rates now that things have gone to hell in a handbag.
The only thing that will cause the fed to change course is if hyperinflation kicks in, or foreign central banks revolt. While both could happen sometime in the future, at this point neither looks likely in the immediate future. My hunch is it will be years before we see a real change in fed policy.
XBoxBoy
Participant[quote=fredo4]I can’t believe that it would be the schools drawing buyers. It’s way cheaper to buy a house elsewhere and put your kids in private schools. [/quote]
It’s not just the schools. Places with good schools are more likely to have good neighbors. If your a family, you want to be around other families like yours. And CV for better or worse is seen as a good place to raise a family.
Participant[quote=fredo4]I can’t believe that it would be the schools drawing buyers. It’s way cheaper to buy a house elsewhere and put your kids in private schools. [/quote]
It’s not just the schools. Places with good schools are more likely to have good neighbors. If your a family, you want to be around other families like yours. And CV for better or worse is seen as a good place to raise a family.
Participant[quote=fredo4]I can’t believe that it would be the schools drawing buyers. It’s way cheaper to buy a house elsewhere and put your kids in private schools. [/quote]
It’s not just the schools. Places with good schools are more likely to have good neighbors. If your a family, you want to be around other families like yours. And CV for better or worse is seen as a good place to raise a family.
Participant[quote=fredo4]I can’t believe that it would be the schools drawing buyers. It’s way cheaper to buy a house elsewhere and put your kids in private schools. [/quote]
It’s not just the schools. Places with good schools are more likely to have good neighbors. If your a family, you want to be around other families like yours. And CV for better or worse is seen as a good place to raise a family.
Participant[quote=fredo4]I can’t believe that it would be the schools drawing buyers. It’s way cheaper to buy a house elsewhere and put your kids in private schools. [/quote]
It’s not just the schools. Places with good schools are more likely to have good neighbors. If your a family, you want to be around other families like yours. And CV for better or worse is seen as a good place to raise a family.
December 17, 2008 at 8:06 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317093Participant[quote=esmith]How about we stop panicking and try to do some level-headed analysis.[/quote]
Nah the problem with that approach is that people are not level-headed and rational. If you learn nothing else from this recent housing bubble, learn that people are not rational, and that all economics that sits on top of the belief that people are rational acting agents is faulty.
Instead understand that as problems get harder to figure out, as the analysis gets tougher, we as people give up and rely on what our friends, neighbors and coworkers think. If our neighbors think that house prices only go up, then we believe that house prices only go up too. If your a CEO of a huge investment bank and if the other CEO’s at your club think that credit default swaps spread risk around making the world more safe, then you too believe that. If you’re the chairman of the federal reserve and all your academic buddies believe that lowering interest rates, printing money, and encouraging everyone to take on debt will solve all your problems, well then that’s what you believe too.
There’s no place for rational analysis here. It too much work! Much easier to just rely on what others think.
XBoxBoy
December 17, 2008 at 8:06 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317115Participant[quote=esmith]How about we stop panicking and try to do some level-headed analysis.[/quote]
Nah the problem with that approach is that people are not level-headed and rational. If you learn nothing else from this recent housing bubble, learn that people are not rational, and that all economics that sits on top of the belief that people are rational acting agents is faulty.
Instead understand that as problems get harder to figure out, as the analysis gets tougher, we as people give up and rely on what our friends, neighbors and coworkers think. If our neighbors think that house prices only go up, then we believe that house prices only go up too. If your a CEO of a huge investment bank and if the other CEO’s at your club think that credit default swaps spread risk around making the world more safe, then you too believe that. If you’re the chairman of the federal reserve and all your academic buddies believe that lowering interest rates, printing money, and encouraging everyone to take on debt will solve all your problems, well then that’s what you believe too.
There’s no place for rational analysis here. It too much work! Much easier to just rely on what others think.
XBoxBoy
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