<< <i>The point I was making was about LAND not houses. However, my house, bought in 2005 is worth about what I paid for it, maybe down if I HAD to sell, which I don't. The point was made earlier about taxes being an implicit housing cost whether you rent or own. The other part is I am saying NOW is a good time to buy, not in the middle of the crazed market going up, but rather a long term buy while it is down. Check this thread in 3 years. >>
Deepcoin, I actually like real estate. I just want to buy it at the right price. What may look like a good deal today may look terrible in 3 years. We will see municipalities desperately trying to raise revenue and property owners are the most likely and easiest targets.
Indeed, let's check back in this thread in 3 years when incomes are half what they are now, taxes are double, and unemployment is triple. Land prices will need to be mucl lower to compensate for all that.
I'm having a hard time seeing how that would be an advantage. The price of all other goods and services would nominally double overnight as well. Since there's no linkage between gold and the dollar (as has been pointed out endlessly), wouldn't it be the same thing as saying that your $10,000 car would double in value to $20,000 overnight?
Most goods would not double overnight, but only things acting like money or consumable items critical to daily life. Your daily driving commuter cars would certainly not double, nor would other durable goods like appliances, computers, clothing, etc. For the present time there is still a sharp linkage between gold and the dollar. And it may stay that way for years or basically until the dollar is revamped or phased out. Gold doubling overnight would equate to a massive drop in the dollar overnight such as occured in the 1930's when FDR devalued the dollar by 40% when he jacked up the price of gold from $20 to $35/oz.
The housing market is not bottoming until 2010-2012 as there is much more washing out to do. A minimal 30% correction from the peak in this type of crisis is not going to cut it. Getting in now would be foolish except in those scarcer pockets of growth and stability around the US where prices never took off to begin with. Besides watching the price of your home fall, you also get to pay for taxes and property maintenance. As long as real interest rates stay negative, homes don't make good investments.
I dont think many could argue that real wages must increase to put more $$ in the hands of the "borrowers" in order for them to settle their debts.
Then why is it far-fetched when someone mentions a "devaluation" of our $$. It was done in 1933/34. The gov't "reset" the gold price to $35 from $21. We were on a gold standard. This allowed the US Gov't to set the printing presses to overload. Print money. Employ people. Pay them. Buy goods. Invest. Gets the process started again.
What are you hearing today? WE NEED A STABLE CURRENCY.
So, if the "gold-exchange" policy that existed in 1971 and prior was re-instated, with a small % pegged to the price of gold, the price of gold could be "set" by governments at $5000 or $10000? whatever it takes to print enough $$ to get this economy moving again.
So what if you pay $20k for the $10k car if you make double the income you do today?
But you can pay your debts that are FIXED with new dollars. Pay them off. And so can the government pay down that huge deficit thats been financed by the Asians.
We were on a gold standard. This allowed the US Gov't to set the printing presses to overload. Print money. Employ people. Pay them. Buy goods. Invest. Gets the process started again.
The only problem with that was that it didn't work. Money stayed scarce and never really made it to the working people where it was really needed. But apparently much of it made it to the stock market where some speculated in the ups and downs of the market. If not for the entry into WW2 FDR's policies were basically ineffective and in many cases counter-productive....with the fallout of his New Deal ultimately strangling us today.
BO hasn't been reading history. The Neu-New Deal is just government jobs doing environmental public works paid for by the printing press....more debt. Instead he is readying himself for the new Amerikan future by reading books like "The Post American World." PC America. Ren
They can have my gold and silver when they pry it from my cold dead fingers. But they will have to travel a ways to do it cause I'm moving to Macau in January.
Comments
<< <i>The point I was making was about LAND not houses. However, my house, bought in 2005 is worth about what I paid for it, maybe down if I HAD to sell, which I don't. The point was made earlier about taxes being an implicit housing cost whether you rent or own. The other part is I am saying NOW is a good time to buy, not in the middle of the crazed market going up, but rather a long term buy while it is down. Check this thread in 3 years. >>
Deepcoin, I actually like real estate. I just want to buy it at the right price. What may look like a good deal today may look terrible in 3 years. We will see municipalities desperately trying to raise revenue and property owners are the most likely and easiest targets.
Indeed, let's check back in this thread in 3 years when incomes are half what they are now, taxes are double, and unemployment is triple. Land prices will need to be mucl lower to compensate for all that.
Most goods would not double overnight, but only things acting like money or consumable items critical to daily life. Your daily driving commuter cars would certainly not double, nor would other durable goods like appliances, computers, clothing, etc. For the present time there is still a sharp linkage between gold and the dollar. And it may stay that way for years or basically until the dollar is revamped or phased out. Gold doubling overnight would equate to a massive drop in the dollar overnight such as occured in the 1930's when FDR devalued the dollar by 40% when he jacked up the price of gold from $20 to $35/oz.
The housing market is not bottoming until 2010-2012 as there is much more washing out to do. A minimal 30% correction from the peak in this type of crisis is not going to cut it. Getting in now would be foolish except in those scarcer pockets of growth and stability around the US where prices never took off to begin with. Besides watching the price of your home fall, you also get to pay for taxes and property maintenance. As long as real interest rates stay negative, homes don't make good investments.
roadrunner
Then why is it far-fetched when someone mentions a "devaluation" of our $$. It was done in 1933/34. The gov't "reset" the gold price to $35 from $21. We were on a gold standard. This allowed the US Gov't to set the printing presses to overload. Print money. Employ people. Pay them. Buy goods. Invest. Gets the process started again.
What are you hearing today? WE NEED A STABLE CURRENCY.
So, if the "gold-exchange" policy that existed in 1971 and prior was re-instated, with a small % pegged to the price of gold, the price of gold could be "set" by governments at $5000 or $10000? whatever it takes to print enough $$ to get this economy moving again.
So what if you pay $20k for the $10k car if you make double the income you do today?
But you can pay your debts that are FIXED with new dollars. Pay them off. And so can the government pay down that huge deficit thats been financed by the Asians.
The only problem with that was that it didn't work. Money stayed scarce and never really made it to the working people where it was really needed. But apparently much of it made it to the stock market where some speculated in the ups and downs of the market. If not for the entry into WW2 FDR's policies were basically ineffective and in many cases counter-productive....with the fallout of his New Deal ultimately strangling us today.
roadrunner
Instead he is readying himself for the new Amerikan future by reading books like "The Post American World."
PC America.
Ren
on the problems and implements a comprehensive and competent
plan, very, very fast.
Camelot
<< <i>We can only hope, that the new administration puts the best minds
on the problems and implements a comprehensive and competent
plan, very, very fast. >>
Tom Dashle is back in Washington so Happy Days Are here Again.
Change, my arse!
R
edited for articles of throw up