this is for you smart wall street people.?
agree or disagree? give your opinion too please. i know we are in a depression. realestate never falls as hard as it is now. the last time was 1929-38. the government is pulling out all the stops to stave off a much needed depression. home prices tripled in 12 years and my food bill has gone up by 35% in the last 3 years. gas prices are soaring and the average mans paycheck may have gone up 20% in the last 10 years. a depression is a neccesary evil to bring prices back under control. the government is printing money faster than a speeding bullet. Question for you is, when will it really hit hard? there is no stopping this one. a natural correction is here.
come on, lets get a person with a degree in investing and economics. lets see how wise you are.
TO ENGINEER! IF THE SKY IS NOT FALLING THEN WHY ARE PROPERTY VALUES FALLING BY OVER 25%? AND DURING ALL OTHER RECESSIONS THE GOVT. WOULD INTERVENE HERE AND THERE WITH A LITTLE STIMULUS PACKAGE. NOW THE GOVT. IS INTERVENING TWICE A WEEK SOMETIMES WITH HUGE STIMULUS PACKAGES AND NOTHING IS WORKING. EVERY 30 OR 60 YEARS SINCE THE BEGINING OF THE U.S. ECONOMY THERE HAS BEEN A DEPRESSION. THATS A DOCUMENTED FACT!
You just described inflation, not a depression. You mean a job loss included? That would be stagflation (look up the Carter administration). A depression is when jobs and prices drop.
I believe prices might rise, but real estate had it coming. If you apply the 2.5 year rule (gross income*2.5=cost of property one can afford) and know 75% of all house make less than $57,000, you would see that the real estate boom should have been over long ago.
The job market looks good. There are millions of jobs waiting for people if they would get an education and get modivated. There is already a shortage of doctors, nurses, teachers, firemen, police, rail road workers, dock workers and military troops. There wil be a shortage of about 35+ million new jobs in the next 18 years as the baby boomers retire. Right now there are about 6 million people out of work at any one time.
January 2nd, 2010 at 8:35 am
Just an opinion, but aren’t you at risk at starting from a false premise ?
Your question assumes that prices have gone too high and a correction is needed to bring them back down.
Whilst I agree housing stock in most developed nations has risen beyond the means of those who require it and is therefore due for a correction, gas and food has always been very cheap in the US compared to the rest of world.
Is there not a possibility that the ‘correction’ is in fact the rising prices (in % terms) you are having to endure ?
I symapthise with anyone who sees their hard earnt pay getting them less and less, but to answer your question with a question…. is this ‘the correction’ ?
I hope not, but suspect it may be so.
References :
January 2nd, 2010 at 9:22 am
You just described inflation, not a depression. You mean a job loss included? That would be stagflation (look up the Carter administration). A depression is when jobs and prices drop.
I believe prices might rise, but real estate had it coming. If you apply the 2.5 year rule (gross income*2.5=cost of property one can afford) and know 75% of all house make less than $57,000, you would see that the real estate boom should have been over long ago.
The job market looks good. There are millions of jobs waiting for people if they would get an education and get modivated. There is already a shortage of doctors, nurses, teachers, firemen, police, rail road workers, dock workers and military troops. There wil be a shortage of about 35+ million new jobs in the next 18 years as the baby boomers retire. Right now there are about 6 million people out of work at any one time.
References :
January 2nd, 2010 at 9:52 am
Every time there is a recession, the "sky is falling" people like you appear. Yes, recessions are painful, but market economies have a remarkable ability to recover and show positive growth in the long term. Retraction cycles are a reality, but not the end of the world.
References :