I suppose that's what the people get when they pay seven and a half billion dollars a year for magic.
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If you thought the "Recovery" was Bad, just Wait for the next Official Recession
- Thread starter St. Phatty
- Start date
St. Phatty
Active member
One way that the housing market is highly manipulated is when the US gov. bought $Trillions in Mortgage Backed Securities from 2008 to who knows when or if they stopped, it provided price support, and kept the attached homes out of the bankruptcy auctions. Which tend to reduce prices a lot.
What I can't figure out is why the much-bragged-about "Free Market" isn't hooking up the lower income people up with housing.
I know when economies of scale are applied to things like manufacturing, prices come way the fvck down.
How come nobody is making a 500 square foot apartment, that you can purchase, parked in its final resting place, for $100K.
I know it's technologically possible.
I conclude it doesn't happen because Intel & AMD & Apple Engineers (all companies that provide some examples of economies of scale) don't have to deal with the Zoning & Planning Departments of all the cities around the world. They just have to deal with the laws of physics & chemistry etc.
So when they make a million of something for cheaper, they're not banging heads with an HOA or Planning-Zoning.
What I can't figure out is why the much-bragged-about "Free Market" isn't hooking up the lower income people up with housing.
I know when economies of scale are applied to things like manufacturing, prices come way the fvck down.
How come nobody is making a 500 square foot apartment, that you can purchase, parked in its final resting place, for $100K.
I know it's technologically possible.
I conclude it doesn't happen because Intel & AMD & Apple Engineers (all companies that provide some examples of economies of scale) don't have to deal with the Zoning & Planning Departments of all the cities around the world. They just have to deal with the laws of physics & chemistry etc.
So when they make a million of something for cheaper, they're not banging heads with an HOA or Planning-Zoning.
White Beard
Active member
Because the homeless are not the target market for real-estate. All those cheap properties scarfed up are packaged, sold, and bulldozed for new development, all with high-ticket projected income.
Still true: the easiest, fastest, best way to get rich is to already *be* rich.
Still true: the easiest, fastest, best way to get rich is to already *be* rich.
PDX Dopesmoker
Active member
The "good-economy" and "bad-economy", "recession" this and "expansion" that which the newspapers and other entertainment venues are always talking about never seems to dovetail with my own personal fortunes.
Is that because I'm such a nonconformist or is it because the economic news is just a bunch of "We have always been at war with Eastasia" type bullcrap?
Is that because I'm such a nonconformist or is it because the economic news is just a bunch of "We have always been at war with Eastasia" type bullcrap?
Empirical studies have, in general, shown that because of the tax deductibility of interest,
debt financing leads on average to an addition to company value equal to some 10 to 17% of
the addition to debt. A company that switched from an all-equity capital structure to one that
included $10 million of debt would, therefore, see its value rise by $1 million to $1.7 million.
The big boys know the value of debt.
lol
I'm sorry you missed my point.
But you proved that people believe anything.
But you proved that people believe anything.
TychoMonolyth
Boreal Curing
Oh God... you sound like my buddies when they say "Buy it! You can write it off." At some point, your purchase becomes a liability. And shit better not go sideways on you.
At the end of the tech boom, everyone justified their decisions. An old timer (85yr old) told me to liquidate. Why? Because "there's help wanted signs in every store front". There are signs they don't teach you in schools.
X
xavier7995
Eh, debt for something like a home purchase is a good thing assuming your real estate is appreciating at a higher rate than you are paying on your loan. It is one of the few ways the little folks like us can take advantage of leverage the same as investment companies/wealthy people. No bank is going to loan me 500k to invest willynilly, but they might make that loan if it is to buy an asset. So if housing is going up 10% and you borrow at 4, you are getting 6% on 500k in unrealized gains. This does expose you to the downside if prices stagnate or fall, but eh, at least you wind up with a stable payment rather than rent that always goes up.
So in conclusion it was colonel mustard with the lamp in the study...and debt has value and is useful. Almost rambled for half a page about mortgage backed securities before realizing no one wanted to read my disjointed mess, im all about economics today apparently.
So in conclusion it was colonel mustard with the lamp in the study...and debt has value and is useful. Almost rambled for half a page about mortgage backed securities before realizing no one wanted to read my disjointed mess, im all about economics today apparently.
Hydro8
Member
Yeah these lazy kids just want to hang out smoke pot and drink wine. That's why the DOW and S&P keep going down. No work ethic.
FEMA I wonder how many millions of homeless are living with no running water, freezing temps, lack of food ?? I guess it is more profitable and better PR to have the criminal "justice" system deal with them.
Like they say "Food is less expensive then soldiers" Wheres the profit in that..? Lock,em up and hire more thugs.
HUD did this in 2006-08, they build junky little condos gave out loans with 0 down to SSI recipients. They didn't account for(or didn't care about) maintenance cost. So after a couple of years the places started falling apart because the tenants/"owners" could not afford maintenance costs.
Now the places cannot be sold because the special loan terms state they cannot be sold for more then so much profit and the next buyer has to be low income, take over existing terms, bla,bla toxic terms. Locked into a bad deal.
But they are finally.. Home Owners !
I keep thinking this when I hear "Buying a home is cheaper then rent" "I cannot afford to rent a home so I am going to buy one"
Look out below !
Economics teaches that more of something is cheaper.
Economics teaches that debt has value.
Reality teaches that economics is lying.
Economics teaches that debt has value.
Reality teaches that economics is lying.
Mumon’s Poem:
Because it is so very clear,
It takes longer to come to the realization.
If you know at once candlelight is fire,
The meal has long been cooked.
— The Gateless Gate
St. Phatty
Active member
Actually there are lots economists that are concerned with the Reality part.
CFTC Chair Brookesley Born tried to regulate Mortgage Backed Securities in the mid-to-late 90's. She knew they were built on deceipt and would explode.
3 other Clinton Appointees stood in her way. 3 Jewish Banksters. Greenspan, Rubin, and Summers. Came down like a brick wall, to make sure the MBS scam would continue.
Ms. Born resigned. Greenspan said "the market would take care of a collapse in MBS values".
And then the US gov. bailed out the banksters in 2008-9.
G `day DC
You `re gonna have to help me understand that one bro .
Riddles as poems have never been my strength .
Thanks for sharin
EB .
St. Phatty
Active member
Mumon’s Poem:
Because it is so very clear,
It takes longer to come to the realization.
If you know at once candlelight is fire,
The meal has long been cooked.
I think Mumon's Poem is trying to say that learning something un-specified about fire, will somehow some way, help you cook meals. to Provide.
Then the art/ conversation piece of it is, everybody has their own version of Fire.
And, Mumon's Poem was written before Cannabis was referred to as Fire.
The inherent lack of logic in trying to describe reality,
when one does not truly know what reality is.
Great time to buy T-Bills. The Treasury market is going through what they call "an inverted curve". In short, this has ALWAYS come before a recession. ALWAYS.
However, the stock market people are blowing it off and claiming that the market is too strong for a recession.
If the Treasury does hit the inverted curve and we DO NOT have a recession, it will be the first time in American history.
Just something to think about.
That, and the fact that short term bills (4 week) are paying almost 2.5%.
The globe is changing and if you are not flexible and open minded, it's going to be a lot harder for you. Change is imminent and people who hate and fight change instead of embracing it are going to have a tough road ahead. Teach your children to be open minded and flexible.
.
However, the stock market people are blowing it off and claiming that the market is too strong for a recession.
If the Treasury does hit the inverted curve and we DO NOT have a recession, it will be the first time in American history.
Just something to think about.
That, and the fact that short term bills (4 week) are paying almost 2.5%.
The globe is changing and if you are not flexible and open minded, it's going to be a lot harder for you. Change is imminent and people who hate and fight change instead of embracing it are going to have a tough road ahead. Teach your children to be open minded and flexible.
.
