prices go up because they pay us more; not the other way around. There is a greater supply of money, but demand doesn't increase. So prices go up in order for supply/demand to reach equilibrium.
And the prices of housing has vastly outpaced inflation, especially since '2000
I started working in architecture in 2002, and I've always felt it was crazy how much these houses I was working on would be worth, when they just don't cost that much to make, and certainly are not of the quality which would justify the price in my mind, but the craziest was that random shlubs working shit jobs but happened to have a house were taking out loans and getting crazy money that they could come to the architect and finance a new remodeling project in like the 100's of thousands of dollars, and they were getting top of the line windows, granite counters, spending mad money on their kitchens and bathrooms, getting brick facade work done on all four sides of the house.
I think housing prices are probably right in line with all the other things on the market wrt inflation. But as inflation is more or less a straight average calculation across all market segments, if one were to break it down directly commodity by commodity - and by knick knacks, candy bars, cars, luxury items, houses, etc - one might find that the relative price increase rate since 19XX or whenever grows more steeply and proportionally (or even exponentially) with its price over time.
However, even breaking it down by item like this doesn't take into account any demographic, geographic, or whatevergraphic info associated with each respective item.
So there it is. Anyone working on a PhD in economics? You have my permission to take that idea and run with it. Just say 'Thanks DIG!' on the stage when you give your Nobel Prize acceptance speech. This one's on me.
You all should have shorted the market when I did. All the cool kids are doing it.
Although I wish I had shorted financials and not retail. But oh well.
The next president walks into a shitstorm.
Galt Wrote:You all should have shorted the market when I did. All the cool kids are doing it.
Although I wish I had shorted financials and not retail. But oh well.
The next president walks into a shitstorm.
DXDDX
Considering that most financial types are always against the government meddling in, what's the overall opinion that now that there's some big losses happening, they are more than willing to let the Fed pump money in to help everyone, and, now, the Federal Reserve is going to help Bear Sterns from collapsing? This sounds like socialized banking to me.
diceisgod Wrote:Ouchies! The looney broad's gonna start now.
LOOK OUT!
You're more whipped than I thought, too funny.
Save the drama for your mamma.
economist linked to the fed reserve in dallas said that we arent in a recession.
he said we were going into a "soft depression".
very scary words
So we'll all be out of a job, I suppose.
Not me. My division has doubled in size in the past six months.
diceisgod Wrote:Save the drama for your mamma.
what'd I ever do to YOU? Everyone hates me here now, it's weird.
Oh yeah, and to get back on topic, scary times. I think everyone is feeling a hit or knows someone who is feeling it - except galt.
I don't know what you're talking about. Anyway if its the whole myspace thing, I already told you:
When I first add you it's a ONE TIME gig. If you have a neuro-mental breakdown for whatever reason and remove yourself from the greatest myspace page that ever was....then you're done...You're out, Tom.
Now that's better. Good girl. Now resend it if you want and I'll add you again.
I am merciful.
We're not in a recession.
Dow up 14.5 points today and oil down $4.50 per barrel.
Chicken littles.
The Dow is below 12,000. Oil is still above 100. Gold is above 1000. Gas prices are at record highs, the cost of basic items is up, and no one is getting a raise except for people in the financial sector.
The economy works well for those that matter. It always has and there is NOTHING different about it now then there was before except the press focus, coverage and jargin...like "we're in a recession".
The democrats need at least a little bit of political fuel for this race. Can't make the election seem like a complete blowout, so they turn the propaganda screws a little bit.
It's all a diversion.
I got a huge bonus last week!
PS. DIG has absolutely zero understanding of economics.
Either that, or the democrats are really sly to plan this market crash for the last 10-15 years and have it all come down right before the election.