[Outcast_Searcher]

$this->bbcode_second_pass_quote('GHung', '
')Rentals. A friend of mine bought several homes out of foreclosure after the crash and now complains about the trials and tribulations of being a landlord. Go figure.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('KaiserJeep', ' ')"Real" inflation is actually around 8% to 11% per year in US$. This compounds rapidly when you do the math.

[Pops]

If you look at a chart of ownership rates/ home price, there are bumps before both the S&L (neg amortization) and subprime crashes. That doesn't indicate some weird increase in demand, it indicates banks a running a scam.

But not just "banks"; brokers, appraisers, agents, inspectors, insurance cos, the whole system knew it was a scam. Hell, I knew it was. I felt terrible selling to that nice young couple for almost 3x what I'd paid a few years previously.
But I did it anyway.

...
Just looked it up, it's still $100k underwater

.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('Pops', 'I')f you look at a chart of ownership rates/ home price, there are bumps before both the S&L (neg amortization) and subprime crashes. That doesn't indicate some weird increase in demand, it indicates banks a running a scam.

But not just "banks"; brokers, appraisers, agents, inspectors, insurance cos, the whole system knew it was a scam. Hell, I knew it was. I felt terrible selling to that nice young couple for almost 3x what I'd paid a few years previously.
But I did it anyway.

...
Just looked it up, it's still $100k underwater

.

[Pops]

I believe that "finance" is sucking the life out of the economy, transferring wealth from the peasants to the wizards.

Prices only rise as far as banks allow, at least traditionally when they actually loaned from their deposits. There is not any widespread shortage of housing, in fact supply looks higher than it was through the 10 years preceding the "taxi driver" scramble. this is months supply




Notice the rise in the dashed red line on this sector chart of GDP share: finance.


click 4 bigger

"Finance" is the largest sector of the economy, by far. It is 25% of the entire economy, up from 10% back when America was Great. Now look around you, how much "finance" do you see? Aren't you thankful for all that "finance"?

Now look at this:



Here is how this particular scam plays out, notice the rocketing debt of "financials" and then Boom, after the wizards' sheets get yanked ... aa buttload is magically assumed by .gov which also doles out a good chunk to puff up bank balance sheets not to mention billions in zero effective rate loans to regular corporate persons (not corporeal persons mind you). ... again, not a whole lot of sugar for the working stiff, greedy bugger that he is.


$this->bbcode_second_pass_quote('', '(')and greed from homebuyers, not the banks)

[KaiserJeep]

I have the traditional view that inflation happens mainly when governments first print money, then spend it. The money supply when diluited like that, is the very definition of inflation. I also don't care for the term "Quantitative Easing", I prefer the blunter term "printing money".

10% per year is your target to simply tread water. Always remember that.

[The_Toecutter]

Here's a more accurate way to gauge the real rate of inflation:

http://chapwoodindex.org/

Check the prices of goods and services that people actually use year over year. 10% year over year sounds about right over the last few years. I've definitely noticed it in the grocery store and in the cost of rent. It was a few percentage points less than 10% year over year prior to 2008, but was still undoubtedly a number significantly higher than the CPI through the 90s and 00s.

[onlooker]

"I believe that "finance" is sucking the life out of the economy, transferring wealth from the peasants to the wizards."
The proof if ever they're was one, is the bail out of the Banks in 08 to the tune of $Billions of taxpayer money. And yet over decades important infrastructure of this county is being financially neglected!

[Newfie]

A person on a life raft without water or hope of immediate rescue would much rather have 10 pounds of water than 10 pounds of gold. This is because of Resource Depletion. That’s when you know the true value of something.

In the meantime they can put all the digits they want on a hard drive, that creates digits on a hard drive, not wealth. If you are playing Monopoly and one player goes out and buys more Monopoly money and brings it to the game then he has an advantage WITHIN THE GAME. But fundamentally it’s still a game. It doesn’t matter in life.

Here is the test, in 2008/2009 trillions of dollars were lost. How many folks starved to death because of that loss? Zero or damn near.

Look at the loss claims in the Bernie Maddoff case. They are all over the place. Some folks invested $10 million. Bernie told them they made $90 million, complete lie, he just printed some extra zeros on paper. Folks claimed they lost $100 million dollars. No, they lost $10 million, the other $90 million never existed. It was just extra computer zeros.

That’s our whole economy, all fake money. Now if you can lay your hands on some fake money and buy something of intrinsic and tangible value, then you have converted a fantasy into a reality. But you have snookered someone out of a real asset for a seat at the Monopoly table. Good for you.

Of course few of us have even fake money to convert. We need what we have to buy scarse resources.

[marmico]

$this->bbcode_second_pass_quote('', 'N')otice the rise in the dashed red line on this sector chart of GDP share: finance.

[Pops]

Back before the crash I quoted shadowstats a lot, the market was way distorted for a minute there and his rates looked plausible from the bunker. But I'm pretty sure that his current '80s alternate chart at 10% plus is way high. The finance industry works hard to make money in any way, legal or not, I'm pretty sure they aren't planning to lose money on day one making 4% mortgages.

But... I think inflation is out there, and low interest rates mean the main tool to fight them is broke.

[Pops]

$this->bbcode_second_pass_quote('marmico', '
')Notice the rise in the solid red line on that sector chart of GDP share: professional and business services.

[marmico]

$this->bbcode_second_pass_quote('', 'B')ack before the crash I quoted shadowstats a lot, the market was way distorted for a minute there and his rates looked plausible from the bunker.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('Pops', '
')I'm thinkin you're blaming the victim.

[Pops]

$this->bbcode_second_pass_quote('marmico', ' ')How deep was your bunker?

[Pops]

$this->bbcode_second_pass_quote('Outcast_Searcher', '')$this->bbcode_second_pass_quote('Pops', '
')I'm thinkin you're blaming the victim.

[Pops]

$this->bbcode_second_pass_quote('Outcast_Searcher', '
')So liar loans (where the applicant lies on the application to get a loan they don't qualify for) are all the banks' fault?

[Outcast_Searcher]

$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('Outcast_Searcher', '
')So liar loans (where the applicant lies on the application to get a loan they don't qualify for) are all the banks' fault?

[Hawkcreek]

$this->bbcode_second_pass_quote('Outcast_Searcher', '
')OK. That's fine. In my world, personal responsibility is "a thing", but I understand that people differ on that idea.

[Pops]

$this->bbcode_second_pass_quote('Outcast_Searcher', '
')OK. That's fine. In my world, personal responsibility is "a thing", but I understand that people differ on that idea.

A bank might be able to catch some lies, but not all lies. Otherwise, why even require paperwork, signatures attesting to the truth of the paperwork, etc?