snakyjake

Why Do Equity Markets Disagree with the Data?

We know the government is going to prevent any sort of crash, either through borrowing or printing money.

I think we're seeing the stock market prices rise because there's a lot of global currency out there. Inflation is seen in the markets.

Savings and Treasuries have too low of yields to be attractive (at least to me).

People putting their money in the market in order to hedge against inflation.

Why Aren't We Undergoing Another Great Depression?

It may be worth mentioning that the world wanted to buy our US dollars and provide us loans....helping to keep interest rates low and keep our debt funded.

A Quick Look at the New Housing Number

I've been noticing more sold/pending sales in my area of the Seattle area too. Maybe the prices have finally come down to a range in which people in this area can afford.


On Jul 27 09:35 PM OilFinder wrote:

> An anecdote on this story . . .
>
> Where I live (north Seattle suburbs), there is a large housing development
> near me which, about a month ago, just "took off." It had been sitting
> idle for about a year, with weeds growing on the unbuilt lots and
> the partially-built sides of wood on some houses showing signs of
> weathering. Now, all of a sudden there is a flurry of activity, with
> houses going up like you wouldn't believe, and at least half of them
> with "sold" signs on them.
>
> Yesterday I went there and asked the salesman what had happened.
> He told me the previous builder had the entire development foreclosed
> to the bank, who then re-sold it to another developer at a bargain
> price. This enabled the new developer to offer the houses at an average
> of $100K less. No wonder people are buying.
>
> There are numerous other developments around me. Some seem to be
> showing recent signs of activity, others are still languishing. My
> observation is that the higher-end ones (judging by the lot sizes
> and locations) are the ones still languishing, while the mid-priced
> ones are the ones showing new signs of life. The specific development
> I spoke of above is one of those mid-priced ones.
>
> If this anecdotal example is typical, it might explain why housing
> starts have started going up again while prices are still going down.
> And, perhaps, the increase in starts is largely concentrated at the
> mid-range. Perhaps there is a slightly-less-than 90 day supply of
> inventory, but maybe it's less than 60 or 70 days for mid-range inventory,
> but 120 days (or something) for high-end inventory.
>
> Just some thoughts.

The Economy Can't Be That Bad if Thousands Can Pay $100 for a Ballgame

Just because you're unemployed doesn't mean you are not spending money. I know a few unemployed people who are buying fancy new cars, motorcycles, boats, clothes, dinners, movies, landscaping, home improvements, etc.

Basically they are spending their severance, savings, and unemployment checks. They have lots of spare time to start new projects (landscaping/home improvements/hobbies). And in my state, unemployment pays a lot more than most available jobs.

Bailout Bill Passes; What Happens Now?

Perhaps to pay for all this debt and keep the dollar from falling, Americans will have to start producing something that other countries want. Or worse, sell more of their assets to foreigners.

McCain's Economic Advisor Says "Recession Is Mental"

Where I live, there are NO signs of a recession. People's grocery carts are packed. Driving hasn't diminished. GDP is still positive. I see a strong number of people still enjoying gasoline related recreation. I hear lots of people complaining, but I don't see anyone making cultural changes. It is nothing like 70's, 80's, or 90's. The stock market is still at 2006 levels. So I agree with Phil, but he should have said it because of political reason. My take is that some parts of this vast country are experiencing difficult times, while other areas are enjoying easy times.

Federal Reserve Exports Inflation

Can someone please provide examples and explanations of how inflation is being exported? I need something simple to understand.

Federal Reserve Exports Inflation

I don't understand how inflation is exported. Can someone please explain in more detail with good examples?

How Low Can the U.S. Dollar Go?

To Mr. Carlson... We had a trade policy mess before a housing loan mess. I think there's multiple messes that need to be cleaned. And then in the meantime our competition may surpass us, and we'll be spending many more years try to catch up.