[FoRK] What's that sound???

Albert S. albert.scherbinsky
Thu Jul 28 05:29:41 PDT 2005


The problem with bubbles is one of timing. If you
happen to be at that stage of your life where it makes
sense to be buying a house right now. And, your job
happens to be in one of the hot housing markets, you
are gambling with your future prosperity buying a
house there now. Perhaps wage inflation over long
periods of time will bring back balance between house
prices and purchasing power, but the thing is, it has
altered the course of your life at this moment in
time.

If you happened to be at that stage of your life in
2000 where it made sense to be investing in the stock
market, and you did. You got screwed.  Long term
inflation won't make you feel much better.

--- "Stephen D. Williams" <sdw at lig.net> wrote:

> The young can always use inflation to devalue the
> old's equity, both in 
> real estate and for social security.  Halve the
> value of everything a 
> few times, which means increasing salaries to
> compensate, and oila, $1 
> million isn't what it used to be.  I have to think
> that all of those 80 
> year olds getting peanuts based on 1930's pay rates
> must realize that 
> something's up.  Even if SS has been adjusted, their
> savings would have 
> a similar problem.
> 
> sdw
> 
> Jim Whitehead wrote:
> 
> >Prior to owning a house, I used to think the same
> thing. But, it turns out
> >my generation has a higher percentage of home
> ownership than prior
> >generations.
> >
> >Besides, if you're right, and home prices stay
> high, that would imply that
> >current valuations are an accurate reflection of
> the value of a house (and
> >hence we're not in a bubble). If we are in a
> speculative bubble, then home
> >prices should fall after the bubble ends, thereby
> increasing affordability.
> >
> >In any event, my understanding is that the low cost
> of mortgages comes from
> >the large influx of cash from outside the US, and
> from corporations in the
> >US, all seeking someplace to find moderate returns
> on that cash.
> >
> >- Jim
> >
> >  
> >
> >>-----Original Message-----
> >>From: fork-bounces at xent.com
> [mailto:fork-bounces at xent.com] On 
> >>Behalf Of Adam L Beberg
> >>Sent: Monday, July 25, 2005 7:32 PM
> >>To: Joe Barrera
> >>Cc: FoRK
> >>Subject: Re: [FoRK] What's that sound???
> >>
> >>Joe Barrera wrote on 7/25/2005 5:53 PM:
> >>    
> >>
> >>>This is a GOOD thing. It's time for young
> couples/families 
> >>>      
> >>>
> >>looking to 
> >>    
> >>
> >>>own a home to no longer be fucked by yuppies
> looking for that 
> >>>remaining 10%+/year investment. There was
> recently an 
> >>>      
> >>>
> >>article in (Wall 
> >>    
> >>
> >>>Street Journal?) about some yuppie fuck who was
> pissing and moaning 
> >>>about *barely* making a 6%/year profit on some
> property he 
> >>>      
> >>>
> >>was forced 
> >>    
> >>
> >>>to sell before he wanted to. Well: boo fuckin'
> hoo.
> >>>      
> >>>
> >>Oh don't worry, the older generation has screwed
> over the 
> >>next 4 or so generations, assuming they haven't
> forked the 
> >>climate so bad that we all die. Most teen
> americans haven't a 
> >>chance in hell of ever owning any property at all,
> only 
> >>leasing, renting, or EULA'ing it. They're all just
> serfs now.
> >>
> >>-- 
> >>Adam L. Beberg
> >>http://www.mithral.com/~beberg/
> >>_______________________________________________
> >>FoRK mailing list
> >>http://xent.com/mailman/listinfo/fork
> >>
> >>    
> >>
> >
> >_______________________________________________
> >FoRK mailing list
> >http://xent.com/mailman/listinfo/fork
> >  
> >
> 
> 
> -- 
> swilliams at hpti.com http://www.hpti.com Per:
> sdw at lig.net http://sdw.st
> Stephen D. Williams 703-724-0118W 703-995-0407Fax
> 20147-4622 AIM: sdw
> 
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> 



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