Are these imaginary friends, because anyone in NYC that has even a slight familiarization with the NYC rent market will tell you that this is not true. Prices on rents dipped in the midst of the "financial crisis" but they are right back up at the tops, $65-$85 a square foot. Real Deal had articles on this months ago with even the free NYC papers doing articles on it now.
Relative to the credit contraction in the economy from 2007 to present, the relatively minor drops in prices in certain sectors of the economy are nowhere near what they should be relative to, dare I say, hyperinflationary ascent in many costs over the past decade. I'll cite you two examples, professor: Electricity costs. (Can we agree this is a core item in everyone's budget? or are you going to tell me we can reasonably assume that if this cost gets too high, it can be replaced by candlelight?) 2000 2010 Delivery 4.5 6.6 47% Energy 4.8 12.1 152% Total 9.3 18.7 101% Source: http://www.ctenergyinfo.com/dpuc_clp_t-d_rates_2000-present.htm Tuition. (I picked Harvard and University of Iowa). Private/Public Universities. Harvard University Tuition (2000) Tuition $22, 694 room and student services $5,879 board $3,792 health fees $745 Total $33,110 (2010) Total $50,724 http://www.news.harvard.edu/gazette/2000/03.09/tuition.html University of Iowa Tuition (2000) $2,906 (2010) $6,824
I don't know if QE will work out well for the U.S. as opposed to alternatives, but it is good to keep in mind a rather profound difference between the U.S. and Japan. Japan is a nation of savers so when their government issues bonds the Japanese are largely borrowing from themselves. Thus they have far less incentive to inflate their way out of debt, as they would be cheating themselves. This is obviously one reason why they were reluctant and very slow to ease, and when they finally did it was a half-hearted effort. The situation in the U.S., which is a nation of borrowers and spenders, and until recently had a negative personal savings rate, is somewhat different. The U.S. has borrowed externally to a greater extent than has Japan. Thus the incentive to inflate away debt is considerable greater in the U.S. than in Japan. Hence the eagerness with which the U.S. central bank embraces QE. If one can get away with paying back borrowed dollars with 50 cent pieces, and the jury is out, why not give it a try?
I think QE and QE2 have more to do with letting the big member banks of the fed continue to pretend that they are solvent than fixing our economic problems, which are structural and will take many years to resolve.
harvard was not a good example "expenses at harvard universityare very transparent and are waived for low income families. http://milwaukeecourieronline.com/i...-student-loans/ and do not exceed 10% for middle income families up to $180,000 of income. http://www.nytimes.com/2007/12/11/e...2460,000&st=cse"
according to your numbers an 800 square foot apartment at$72/square foot would go for $4800/month. that number is way too high even for a luxury building. by the way your numbers $65-$85 is per square foot per year.