http://www.doctorhousingbubble.com/federal-reserve-fighting-inflation-in-the-1970s-and-restraining-the-housing-market-today-the-federal-reserve-is-juicing-the-housing-market-trying-to-cause-inflation-researching-the-1970s-and-1980s/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 15:03:51 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.doctorhousingbubble.com/federal-reserve-fighting-inflation-in-the-1970s-and-restraining-the-housing-market-today-the-federal-reserve-is-juicing-the-housing-market-trying-to-cause-inflation-researching-the-1970s-and-1980s/#comment-43572 Kid Charlemagne Sat, 26 Dec 2009 05:54:22 +0000 http://www.doctorhousingbubble.com/?p=2810#comment-43572 Thanks @It's gonna, I think Ben's chopper is about out of gas. Elliot Wave folks present a great case for the Fed not driving interest rates, but actually following them. Alpha's Charles Smith makes a great case as well that rates will start to rise soon no matter what the target is because the $ is losing reserve status around the world and China doesn't need to buy as much as exports drop. I think that if CA home prices drop significantly it won't help most buyers that much because whatever their source of income it will likely diminish. Even state workers will be slashed as state budgets fail and they cannot print currency. If home prices fall to where they should be, the collapse may be unstoppable. Look at oil prices. They have so much crude they are running out of places to store it, but the MSM parrots deceptive statistic manipulation like we drew down supplies last week. It's BS, but it works--crude demand continues to drop but prices go up. Why should housing be different, particularly with the PTB doing every thing imaginable to reflate the housing bubble. If it were supply and demand it would already have happened. It should, but it's just not that simple. Thanks @It’s gonna,
I think Ben’s chopper is about out of gas. Elliot Wave folks present a great case for the Fed not driving interest rates, but actually following them. Alpha’s Charles Smith makes a great case as well that rates will start to rise soon no matter what the target is because the $ is losing reserve status around the world and China doesn’t need to buy as much as exports drop. I think that if CA home prices drop significantly it won’t help most buyers that much because whatever their source of income it will likely diminish. Even state workers will be slashed as state budgets fail and they cannot print currency. If home prices fall to where they should be, the collapse may be unstoppable.
Look at oil prices. They have so much crude they are running out of places to store it, but the MSM parrots deceptive statistic manipulation like we drew down supplies last week. It’s BS, but it works–crude demand continues to drop but prices go up. Why should housing be different, particularly with the PTB doing every thing imaginable to reflate the housing bubble. If it were supply and demand it would already have happened. It should, but it’s just not that simple.

]]> http://www.doctorhousingbubble.com/federal-reserve-fighting-inflation-in-the-1970s-and-restraining-the-housing-market-today-the-federal-reserve-is-juicing-the-housing-market-trying-to-cause-inflation-researching-the-1970s-and-1980s/#comment-43555 Orv Thu, 24 Dec 2009 21:54:26 +0000 http://www.doctorhousingbubble.com/?p=2810#comment-43555 @IB: If you think that housing prices will go down, and mortgage rates will go up, the ideal thing to do would be save up a big pile of cash and then buy a house outright in the future. If you're paying cash, the mortgage rate won't matter, and you can take advantage of prices depressed by the high rates. Unfortunately this isn't an option for most people because they just can't pile up that much cash in a reasonable amount of time. @IB: If you think that housing prices will go down, and mortgage rates will go up, the ideal thing to do would be save up a big pile of cash and then buy a house outright in the future. If you’re paying cash, the mortgage rate won’t matter, and you can take advantage of prices depressed by the high rates. Unfortunately this isn’t an option for most people because they just can’t pile up that much cash in a reasonable amount of time.

]]> http://www.doctorhousingbubble.com/federal-reserve-fighting-inflation-in-the-1970s-and-restraining-the-housing-market-today-the-federal-reserve-is-juicing-the-housing-market-trying-to-cause-inflation-researching-the-1970s-and-1980s/#comment-43536 Nimesh Patel Thu, 24 Dec 2009 04:16:16 +0000 http://www.doctorhousingbubble.com/?p=2810#comment-43536 Well as the Chinese say "may you live in interesting times". The Fed is trying to inflate our way out of this mess. I believe we are in a deflationary environment and either of two things will occur; we will have a deflationary depression or we will end up like Japan a long, long, long deflationary stagnated economic conditions for a long time. Japan has experienced two decades of deflation where the economy show signs of life only to sputter again. Well as the Chinese say “may you live in interesting times”. The Fed is trying to inflate our way out of this mess. I believe we are in a deflationary environment and either of two things will occur; we will have a deflationary depression or we will end up like Japan a long, long, long deflationary stagnated economic conditions for a long time. Japan has experienced two decades of deflation where the economy show signs of life only to sputter again.

]]> http://www.doctorhousingbubble.com/federal-reserve-fighting-inflation-in-the-1970s-and-restraining-the-housing-market-today-the-federal-reserve-is-juicing-the-housing-market-trying-to-cause-inflation-researching-the-1970s-and-1980s/#comment-43532 It's gonna be a while.... Thu, 24 Dec 2009 03:10:10 +0000 http://www.doctorhousingbubble.com/?p=2810#comment-43532 Kid Charlemagne your post and your rationale rocks! If everyone would just see it that way, prices would revert back to reality quickly. Great post as always Dr. HB! Kid Charlemagne your post and your rationale rocks! If everyone would just see it that way, prices would revert back to reality quickly. Great post as always Dr. HB!

]]> http://www.doctorhousingbubble.com/federal-reserve-fighting-inflation-in-the-1970s-and-restraining-the-housing-market-today-the-federal-reserve-is-juicing-the-housing-market-trying-to-cause-inflation-researching-the-1970s-and-1980s/#comment-43511 Kid Charlemagne Wed, 23 Dec 2009 04:27:54 +0000 http://www.doctorhousingbubble.com/?p=2810#comment-43511 There's are reason why engineers build airplanes and power plants and economists don't. Engineers have to use real math, while economists use the "oh, that's bad, no that's good" voodoo math that does not resolve to a solution. If our lives depended on the accuracy of economists and realtors we'd have been dead a long time ago. But they're the ones in control now. So go ahead and justify a half-million mortgage for a box that will get burned up in a wildfire or swept away in a mud slide (btw, sometimes CA weather sucks) if that's what you want, you can find some unsustainable method to usurp the majority of income of your adult life to buy into the declining remnants of the largest asset bubble in modern history (no way the 20's bubbles were this big, however you measure them). We got some great colleges on the east coast too, turning out some of the smartest retail clerks and pizza delivery guys you will find anywhere...Folks, this ain't over yet. Sure you want that Charlton Heston neck ring on for the next 30 years? Planet of the Alt Apes is the scariest thing since Goldman Sachs advised us they were doing God's work...God must be punishing us then. There’s are reason why engineers build airplanes and power plants and economists don’t. Engineers have to use real math, while economists use the “oh, that’s bad, no that’s good” voodoo math that does not resolve to a solution. If our lives depended on the accuracy of economists and realtors we’d have been dead a long time ago. But they’re the ones in control now. So go ahead and justify a half-million mortgage for a box that will get burned up in a wildfire or swept away in a mud slide (btw, sometimes CA weather sucks) if that’s what you want, you can find some unsustainable method to usurp the majority of income of your adult life to buy into the declining remnants of the largest asset bubble in modern history (no way the 20′s bubbles were this big, however you measure them). We got some great colleges on the east coast too, turning out some of the smartest retail clerks and pizza delivery guys you will find anywhere…Folks, this ain’t over yet. Sure you want that Charlton Heston neck ring on for the next 30 years? Planet of the Alt Apes is the scariest thing since Goldman Sachs advised us they were doing God’s work…God must be punishing us then.

]]>