Randolph Kinney
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- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
A good definition of deflation. :laugh:
A vote of no confidence.
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Global Economy Bursting?
- Thread starter Austin
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A good definition of deflation. :laugh:
A vote of no confidence.
Terrel L. Shields
Elite Member
- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
Is it Thursday that the Fed meets? Gonna be interesting.. I need to buy gold this week.
Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
George Soros: Germany headed into depression within six months
http://www.marketwatch.com/story/so...on-in-6-months-2012-09-10-1391036?siteid=bnbh
http://www.marketwatch.com/story/so...on-in-6-months-2012-09-10-1391036?siteid=bnbh
Dee Dee
Elite Member
- Joined
- Jan 16, 2002
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
Bite your tongue and knock on wood or those PIA Californies will come back in droves!
Colorado was the first to feel the housing boom, the first to feel the bust, and (hopefully) is going to be the first to pull out of it.
That said, all bets are off if the global economy has any big surprises in store. It's all too complicated and intertwined for my little pea-brain to really get a handle on, at least compared to the simplicity of seeing the housing bust coming. I'll keep reading the excellent posts that others continue to contribute here, and hopefully won't get blind-sided like so many have in the past.
Thanks to all who continue to post so much enlightening information!
Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
Big ole Boy
Elite Member
- Joined
- Dec 6, 2003
- Professional Status
- General Public
- State
- Tennessee
Draghi - Dracula . square peg in round hole
http://www.businessinsider.com/what-makes-mario-draghi-so-dangerous-for-europe-2012-9
yea, this guy .... trying to make everybody the same ....... but people are what they are ...
A Spaniard , a Greek , a Frenchman, a German , what ? ...... we are different Ginn .. history made us from the land of necessity - it made our culture .....
...Euro? ..... whats that? .......... a smiling fat hand in small mans pocket .......
s former Spanish PM Jose Maria Aznar as saying that the drive for full fiscal and political union is "deeply misguided":
"A United States of Europe is an impossible idea. It is a very serious mistake to try to destroy the nation states. You cannot go against the cultural beliefs of the people and the forces of history [..]"
Indeed; and only someone like Draghi would be blind to that. That's what makes him dangerous.
Read more: http://theautomaticearth.com/Financ...hi-so-dangerous-for-europe.html#ixzz2689im3ar
http://www.businessinsider.com/what-makes-mario-draghi-so-dangerous-for-europe-2012-9
yea, this guy .... trying to make everybody the same ....... but people are what they are ...
A Spaniard , a Greek , a Frenchman, a German , what ? ...... we are different Ginn .. history made us from the land of necessity - it made our culture .....
...Euro? ..... whats that? .......... a smiling fat hand in small mans pocket .......
s former Spanish PM Jose Maria Aznar as saying that the drive for full fiscal and political union is "deeply misguided":
"A United States of Europe is an impossible idea. It is a very serious mistake to try to destroy the nation states. You cannot go against the cultural beliefs of the people and the forces of history [..]"
Indeed; and only someone like Draghi would be blind to that. That's what makes him dangerous.
Read more: http://theautomaticearth.com/Financ...hi-so-dangerous-for-europe.html#ixzz2689im3ar
Big ole Boy
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- Joined
- Dec 6, 2003
- Professional Status
- General Public
- State
- Tennessee
Spain not take the ECB medicine
http://abcnews.go.com/International...ts-spur-market-wariness-17206723#.UE8UjI2PX4U
How do you get people to change their habits? Spain has their own "culture of habits" that are thousands of years old - what is the Euro ? - a bureaucratic pipe dream ....
... take the Teacher Union strike in Chicago .... teachers can not get kids to fit inside a smaller and smaller control "thought box" by government planners ..... people are driven by self-interest .... and the kids have figured out that "government education" ...... benefits only a those with certain proclivities or talents ...
not everybody wants to read and do math on the terms of the Ivory Tower God-father ....
...the world is weary of progressive super-state unattainable top-down expectations .....
http://abcnews.go.com/International...ts-spur-market-wariness-17206723#.UE8UjI2PX4U
How do you get people to change their habits? Spain has their own "culture of habits" that are thousands of years old - what is the Euro ? - a bureaucratic pipe dream ....
... take the Teacher Union strike in Chicago .... teachers can not get kids to fit inside a smaller and smaller control "thought box" by government planners ..... people are driven by self-interest .... and the kids have figured out that "government education" ...... benefits only a those with certain proclivities or talents ...
not everybody wants to read and do math on the terms of the Ivory Tower God-father ....
...the world is weary of progressive super-state unattainable top-down expectations .....
Last edited by a moderator:
Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
As Low Rates Depress Savers, Governments Reap Benefits
http://www.nytimes.com/2012/09/11/b....html?nl=todaysheadlines&emc=edit_th_20120911
Along with keeping rates low, governments are using a variety of tactics to encourage captive audiences, like pension funds and banks, to buy their debt. Consumers, in other words, are subtly subsidizing governments without even knowing it. Economists have compared this phenomenon to a hidden tax on people’s wealth.
“If you ask a central banker is that what you’re doing, and why you’re doing it, they’ll say ‘No, we’re just trying to get the economy going by making it easier for the private sector to borrow,’ ” said Neal Soss, chief economist at Credit Suisse. “But I have a syllogism for you: The government makes the rules. The government needs the money. So why should it surprise if the rules encourage you to lend the government money?”
“They have to work with their captive audiences — the pension funds, domestic insurance policies, banks, any domestic buyers they can find — to force-feed sovereign debt, sometimes under the euphemism of ‘macroprudential regulation,’ ” said Professor Reinhart.
http://www.nytimes.com/2012/09/11/b....html?nl=todaysheadlines&emc=edit_th_20120911
Along with keeping rates low, governments are using a variety of tactics to encourage captive audiences, like pension funds and banks, to buy their debt. Consumers, in other words, are subtly subsidizing governments without even knowing it. Economists have compared this phenomenon to a hidden tax on people’s wealth.
“If you ask a central banker is that what you’re doing, and why you’re doing it, they’ll say ‘No, we’re just trying to get the economy going by making it easier for the private sector to borrow,’ ” said Neal Soss, chief economist at Credit Suisse. “But I have a syllogism for you: The government makes the rules. The government needs the money. So why should it surprise if the rules encourage you to lend the government money?”
“They have to work with their captive audiences — the pension funds, domestic insurance policies, banks, any domestic buyers they can find — to force-feed sovereign debt, sometimes under the euphemism of ‘macroprudential regulation,’ ” said Professor Reinhart.
Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
U.S.'s credit-rating outlook hinges on budget talks: Moody's
http://www.marketwatch.com/story/mo...rating-outlook-2012-09-11-9911247?siteid=bnbh
http://www.marketwatch.com/story/mo...rating-outlook-2012-09-11-9911247?siteid=bnbh
Randolph Kinney
Elite Member
- Joined
- Apr 7, 2005
- Professional Status
- Retired Appraiser
- State
- North Carolina
Economic duplicity with low wage capitalism
http://www.mybudget360.com/economic-duplicity-low-wage-capitalism-financial-reset-button/
A more trying sign of the times, a survey showing of the three million people that lost jobs between January of 2009 and December of 2011 with longer-term employment, roughly half that found a new job were making less than they once did. In other words, these people now have jobs but at the lower wage side of the scale. This also helps to explain why so many Americans are living day to day while facing the increasing cost of daily goods. It is hard to believe that for over a decade, the median household income has fallen for Americans. Young Americans are fully aware of the challenges the current economy faces because they are encountering it both in lack of savings and massive debt for college.
This also highlights the massive impact on consumption. From making six-figures to being one of the 46.5 million Americans on food stamps. Fortunes can change dramatically and in a hyper consumption based economy, things can turn south quickly caring a profound ripple effect.
In the last few years it is important to note that the top 20 percent did increase their wealth while the bottom 80 percent dropped rather significantly. Wealth is distributed as follows:
The problem with credit bubbles is that they create an enormous system that misallocates capital. When the bubble pops as they always do, the misallocation becomes painfully apparent. In the example above, it is hard to imagine how someone can make six-figures for many years and then suddenly lose it all in a few years. Atlanta is a cheaper part of the country when it comes to housing so you have to wonder where the savings went. Keep in mind that 1 out of 3 Americans has no savings. So once the bubble popped, the artifacts of the bubble remain and you also see how poorly capital was being allocated when easy access to debt was the main vehicle to growth.
The middle class shrunk by 10 percent in the last decade. A bulk of these people went into the lower income category while the other group moved into the upper-income tier. We are starting to lose what many have come to associate with America and that is a strong middle class.
As with public debt that needs to be serviced, so too will taxes be raised both real and inflationary. The middle class has entered into stagflation with no way out.
http://www.mybudget360.com/economic-duplicity-low-wage-capitalism-financial-reset-button/
A more trying sign of the times, a survey showing of the three million people that lost jobs between January of 2009 and December of 2011 with longer-term employment, roughly half that found a new job were making less than they once did. In other words, these people now have jobs but at the lower wage side of the scale. This also helps to explain why so many Americans are living day to day while facing the increasing cost of daily goods. It is hard to believe that for over a decade, the median household income has fallen for Americans. Young Americans are fully aware of the challenges the current economy faces because they are encountering it both in lack of savings and massive debt for college.
This also highlights the massive impact on consumption. From making six-figures to being one of the 46.5 million Americans on food stamps. Fortunes can change dramatically and in a hyper consumption based economy, things can turn south quickly caring a profound ripple effect.
In the last few years it is important to note that the top 20 percent did increase their wealth while the bottom 80 percent dropped rather significantly. Wealth is distributed as follows:
The problem with credit bubbles is that they create an enormous system that misallocates capital. When the bubble pops as they always do, the misallocation becomes painfully apparent. In the example above, it is hard to imagine how someone can make six-figures for many years and then suddenly lose it all in a few years. Atlanta is a cheaper part of the country when it comes to housing so you have to wonder where the savings went. Keep in mind that 1 out of 3 Americans has no savings. So once the bubble popped, the artifacts of the bubble remain and you also see how poorly capital was being allocated when easy access to debt was the main vehicle to growth.
The middle class shrunk by 10 percent in the last decade. A bulk of these people went into the lower income category while the other group moved into the upper-income tier. We are starting to lose what many have come to associate with America and that is a strong middle class.
As with public debt that needs to be serviced, so too will taxes be raised both real and inflationary. The middle class has entered into stagflation with no way out.
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