M3 dipped significantly in September in defiance of easy credit and about-as-low-as -possible rates. Could we yet sink into the morass of deflation? With all these trillions of new dollars pumped into the economy over the past few years, is some deadly form of price-inflation lurking around the corner? Any economist types out there who can give the rest of some guidance on this most serious of topics?
It will be explained in my fairy tale "Disciplex Simplex and Laius Complexius: a fairy tale for understanding economy " http://www.elitetrader.com/vb/showthread.php?s=&threadid=24990 because many people just don't seem to understand that it is the dual facettes of the same thing !
Once upon a time in America anybody who had any job could afford a house; now home ownership requires 2 overtime-supplemented incomes!
that is just not true. its always been a struggle to buy a home. in my parents day they saved for 5 years before the could afford a down payment on a home. nowdays young people think they are entitled to move into a new house as soon as they get married. home ownership has never been easier in most areas of the country. low interest rates, low or no down payments. my sister who is a single mother of 2 making 24000 was recently able to purchase a brand new home.
In most urban and suburban areas the housing prices are very high (the RE 'Bubble'). The low interest rates may make it easy to commit to a house, but hanging on to that pricey house when the interest rates reverse with an improving economy or, conversely, when the housing prices and earnings tumble if the economy fails may prove a tad difficult.
Tell me about it. Just recently I was looking to buy a lot of land in my neigborhood to build a house may be. 100X100 lot goes for $890,000. You move to a suburb somwhere, you'll still have to put up like 400-500K.
well said. the original complaint reminds me of someone crying about having to pay $240 per share for YHOO. There were plenty of other, less volatile equities out there at that time.