Discussion in 'Economics' started by noob_trad3r, Jul 1, 2010.
Will homes go back to 1950 prices, cars and food?
I think it was in NJ they cut the school budget. The Gov then said, since you cut the school budget, lets return the money saved back to the property owners. The school board then said "What money?"
good question as most traders nowadays are making less than minimum wage
Well I read in economics that Pricing power is determined by the capacity of consumers to buy at the prices products are sold.
So if the Average US salary goes to 6 bucks an hour, This would mean homes would go back to 35,000 dollars for a house, cars back to 2500 bucks, eggs for 32 cents for a dozen etc.
So wont we start moving in that direction, this would make buying a house a very poor investment in the longrun especially if deflation happens over time.
capacity of consumers to buy at the prices products are sold.
I think it's a standoff. Whomever can hold out the longest.
How long can Home Depot hold out on the price of a 2x4 and take a loss vs needing the cash.
I think we are seeing this with the Fed pumping money to the state govs.
Maybe the lenders are expecting this. If HD buys a truckload of 2x4's on credit and sells them at a loss, takes the cash and pays labor with the money. Someone is going to take a bath.
Get real. I bought a 3 bedroom house in southern Cal for10.5k in .
The FED sure has protected the value of the USD through the years hasn't it?
prices might drop a bit but if you want a $2500 car you will have to drive a tata nano
you can make an easy comparison by looking at the chinese they make about $1 an hour but cars are still $20k and apartments in Shanghai are ... well lets just say more than $10k
If everyone made minimum wage, Obama would have his dream of the U.S.A. fulfilled. He could then have the absolute power over everyone that he desperately craves.
way too many people make way too much money.
simple as that
and when they stop making $ the gubment give them free cheese.
we'd be a lot better off if we let people fend for themselves.
we could buy their stuff real cheap and when they ran out of stuff , well, they could just disappear.
instead , they all become our poor relations and mooch for the rest of their miserable lives.