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XBoxBoy
Participant[quote=patientlywaiting]We value responsibility and sacrifice, and people are praised for being financially responsible.[/quote]
Clearly you’re still living in the 1950’s. Well, let me be the first to welcome you to the new millennium, and let me bring you up to date. It turns out that in recent years, this has flip flopped, and now we value excessive spending and irresponsibility. Not only in the individual but in the government too. The more you spend, the more benefits society will heap upon you. The more you save, and the more responsible you are, the more of a chump you are, and deserve to have what you have saved taken from you. Once again, welcome to 2008.
XBoxBoy
Participant[quote=patientlywaiting]We value responsibility and sacrifice, and people are praised for being financially responsible.[/quote]
Clearly you’re still living in the 1950’s. Well, let me be the first to welcome you to the new millennium, and let me bring you up to date. It turns out that in recent years, this has flip flopped, and now we value excessive spending and irresponsibility. Not only in the individual but in the government too. The more you spend, the more benefits society will heap upon you. The more you save, and the more responsible you are, the more of a chump you are, and deserve to have what you have saved taken from you. Once again, welcome to 2008.
XBoxBoy
ParticipantWannabe,
I think you are basically correct. There is no way to re-inflate housing without going back to irresponsible lending standards. That means home prices will continue to drop until they return to prices supported by traditional fundamentals. (Reasonable price to income ratio, or price to rent ratio)
If you have significant inflation, you could keep nominal prices from going down, but real prices are going to drop regardless. (And right now, deflation seems to be more relevant than inflation)
And as to what the government does? Yes, at best, the only end result of what they do will be to prolong the adjustment period. However, there is a more ominous possibility. With the government forcing banks to rewrite loans, they are making writing and issuing new mortgages all the less attractive to investors. That will mean fewer and harder to get mortgages in the future. That will only increase the amount that the decline in housing overshoots the traditional fundamentals.
XBoxBoy
ParticipantWannabe,
I think you are basically correct. There is no way to re-inflate housing without going back to irresponsible lending standards. That means home prices will continue to drop until they return to prices supported by traditional fundamentals. (Reasonable price to income ratio, or price to rent ratio)
If you have significant inflation, you could keep nominal prices from going down, but real prices are going to drop regardless. (And right now, deflation seems to be more relevant than inflation)
And as to what the government does? Yes, at best, the only end result of what they do will be to prolong the adjustment period. However, there is a more ominous possibility. With the government forcing banks to rewrite loans, they are making writing and issuing new mortgages all the less attractive to investors. That will mean fewer and harder to get mortgages in the future. That will only increase the amount that the decline in housing overshoots the traditional fundamentals.
XBoxBoy
ParticipantWannabe,
I think you are basically correct. There is no way to re-inflate housing without going back to irresponsible lending standards. That means home prices will continue to drop until they return to prices supported by traditional fundamentals. (Reasonable price to income ratio, or price to rent ratio)
If you have significant inflation, you could keep nominal prices from going down, but real prices are going to drop regardless. (And right now, deflation seems to be more relevant than inflation)
And as to what the government does? Yes, at best, the only end result of what they do will be to prolong the adjustment period. However, there is a more ominous possibility. With the government forcing banks to rewrite loans, they are making writing and issuing new mortgages all the less attractive to investors. That will mean fewer and harder to get mortgages in the future. That will only increase the amount that the decline in housing overshoots the traditional fundamentals.
XBoxBoy
ParticipantWannabe,
I think you are basically correct. There is no way to re-inflate housing without going back to irresponsible lending standards. That means home prices will continue to drop until they return to prices supported by traditional fundamentals. (Reasonable price to income ratio, or price to rent ratio)
If you have significant inflation, you could keep nominal prices from going down, but real prices are going to drop regardless. (And right now, deflation seems to be more relevant than inflation)
And as to what the government does? Yes, at best, the only end result of what they do will be to prolong the adjustment period. However, there is a more ominous possibility. With the government forcing banks to rewrite loans, they are making writing and issuing new mortgages all the less attractive to investors. That will mean fewer and harder to get mortgages in the future. That will only increase the amount that the decline in housing overshoots the traditional fundamentals.
XBoxBoy
ParticipantWannabe,
I think you are basically correct. There is no way to re-inflate housing without going back to irresponsible lending standards. That means home prices will continue to drop until they return to prices supported by traditional fundamentals. (Reasonable price to income ratio, or price to rent ratio)
If you have significant inflation, you could keep nominal prices from going down, but real prices are going to drop regardless. (And right now, deflation seems to be more relevant than inflation)
And as to what the government does? Yes, at best, the only end result of what they do will be to prolong the adjustment period. However, there is a more ominous possibility. With the government forcing banks to rewrite loans, they are making writing and issuing new mortgages all the less attractive to investors. That will mean fewer and harder to get mortgages in the future. That will only increase the amount that the decline in housing overshoots the traditional fundamentals.
XBoxBoy
ParticipantBuried in this article is a quote that so clearly shows why we are screwed. It’s from a bureaucrat named Michael H. Krimminger, who is an advisor on policy at the FDIC.
[quote]“This is not about trying to create fairness, The goal is to keep people in their houses.”[/quote]
And there you have it in a nutshell. Forget fairness folks, let keep people in houses. What is this insanity? Isn’t the whole foundation of our American system supposed to be based on fairness? Have we completely forgotten what makes it possible for us to interact in a society? How can someone in such a position be so incredibly clueless?
XBoxBoy
ParticipantBuried in this article is a quote that so clearly shows why we are screwed. It’s from a bureaucrat named Michael H. Krimminger, who is an advisor on policy at the FDIC.
[quote]“This is not about trying to create fairness, The goal is to keep people in their houses.”[/quote]
And there you have it in a nutshell. Forget fairness folks, let keep people in houses. What is this insanity? Isn’t the whole foundation of our American system supposed to be based on fairness? Have we completely forgotten what makes it possible for us to interact in a society? How can someone in such a position be so incredibly clueless?
XBoxBoy
ParticipantBuried in this article is a quote that so clearly shows why we are screwed. It’s from a bureaucrat named Michael H. Krimminger, who is an advisor on policy at the FDIC.
[quote]“This is not about trying to create fairness, The goal is to keep people in their houses.”[/quote]
And there you have it in a nutshell. Forget fairness folks, let keep people in houses. What is this insanity? Isn’t the whole foundation of our American system supposed to be based on fairness? Have we completely forgotten what makes it possible for us to interact in a society? How can someone in such a position be so incredibly clueless?
XBoxBoy
ParticipantBuried in this article is a quote that so clearly shows why we are screwed. It’s from a bureaucrat named Michael H. Krimminger, who is an advisor on policy at the FDIC.
[quote]“This is not about trying to create fairness, The goal is to keep people in their houses.”[/quote]
And there you have it in a nutshell. Forget fairness folks, let keep people in houses. What is this insanity? Isn’t the whole foundation of our American system supposed to be based on fairness? Have we completely forgotten what makes it possible for us to interact in a society? How can someone in such a position be so incredibly clueless?
XBoxBoy
ParticipantBuried in this article is a quote that so clearly shows why we are screwed. It’s from a bureaucrat named Michael H. Krimminger, who is an advisor on policy at the FDIC.
[quote]“This is not about trying to create fairness, The goal is to keep people in their houses.”[/quote]
And there you have it in a nutshell. Forget fairness folks, let keep people in houses. What is this insanity? Isn’t the whole foundation of our American system supposed to be based on fairness? Have we completely forgotten what makes it possible for us to interact in a society? How can someone in such a position be so incredibly clueless?
XBoxBoy
Participant[quote=cooprider]I listen to beings who exist in another reality all day long, but they don’t listen to me.
They’re called politicians.[/quote]
Hmmmm… I have the same problem at my job with my co-workers.Participant[quote=cooprider]I listen to beings who exist in another reality all day long, but they don’t listen to me.
They’re called politicians.[/quote]
Hmmmm… I have the same problem at my job with my co-workers. -
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