US: Severe Inflation Risk?

[Mr.Fitnah]

The only way out of this recession is thru inflation. Unless the recovery take 5 years or so.

It might have taken 5 years with the bail out and tarp it will result in a global meltdown once the stimulus bubble pops.

 

[Chris]

The only way out of this recession is thru inflation. Unless the recovery take 5 years or so.

It might have taken 5 years with the bail out and tarp it will result in a global meltdown once the stimulus bubble pops.

No, it won't.

 

[uscitizen]

It may still take 5 years for us to climb mostly back up and by then China might be imploding.

 

[☭proletarian☭]

I think inflation is what we need.

You're retarded. An inflated monetary supply is never a good thing.

 

[Chris]

I think inflation is what we need.

You're retarded. An inflated monetary supply is never a good thing.

It is if you are faced with deflation which is a much worse alternative.

If the cost of homes was going up, we would have no problems.

 

[uscitizen]

I think inflation is what we need.

You're retarded. An inflated monetary supply is never a good thing.

It is if you are faced with deflation which is a much worse alternative.

If the cost of homes was going up, we would have no problems.

so people going deeper into debt to buy a home is a good thing?

 

[eagleseven]

If the cost of homes was going up, we would have no problems.

Why should the cost of homes be going up?

Fairy tales and pixie dust are all you have to offer.

 

[uscitizen]

Housing is still overpriced considering the employment and economic situation.

 

[Chris]

If the cost of homes was going up, we would have no problems.

Why should the cost of homes be going up?

Fairy tales and pixie dust are all you have to offer.

Ultimately the price of homes will go up.

We are adding 3 million people to the population every year.

That's called demand for housing.

Fairy tales and pixie dust are all you have to offer.

 

[PatekPhilippe]

I think inflation is what we need.

You're retarded. An inflated monetary supply is never a good thing.

It is if you are faced with deflation which is a much worse alternative.

If the cost of homes was going up, we would have no problems.

Tell us why you want the price of your home to rise?

 

[PatekPhilippe]

Housing is still overpriced considering the employment and economic situation.

This is a correct assessment of the current housing market....not to mention 2009 was the single WORST year for the housing market since World War 2......and we see the foreclosures continuing.

 

[☭proletarian☭]

I think inflation is what we need.

You're retarded. An inflated monetary supply is never a good thing.

It is if you are faced with deflation which is a much worse alternative.

If the cost of homes was going up, we would have no problems.

Deflating the monetary supply increases the value of the means of exchange, if the means of exchange truly has any value in the first place.

The worse thing such deflation can ever possible do is cause the means of exchange to be insufficient in quantity to be useful as a means of exchange. Should this occur, something else will fill the spot. Kinda like doing most trade with silver because platinum is too rare to be feasible.

Deflation is a good thing.

 

[☭proletarian☭]

You're retarded. An inflated monetary supply is never a good thing.

It is if you are faced with deflation which is a much worse alternative.

If the cost of homes was going up, we would have no problems.

so people going deeper into debt to buy a home is a good thing?

If it is a temporary debt they can and will pay off per a sound contract, then it is of no major concern.

 

[uscitizen]

It is if you are faced with deflation which is a much worse alternative.

If the cost of homes was going up, we would have no problems.

so people going deeper into debt to buy a home is a good thing?

If it is a temporary debt they can and will pay off per a sound contract, then it is of no major concern.

Yeah 30 years is just temporary.

 

[Paulie]

The ignorance in this thread is astounding.

 

[☭proletarian☭]

so people going deeper into debt to buy a home is a good thing?

If it is a temporary debt they can and will pay off per a sound contract, then it is of no major concern.

Yeah 30 years is just temporary.

If it takes30 years to pay it off and large numbers ofpeople never pay it off at all, then one must ask if it was very sound in the first place, mustn't they? Did you miss that caveat?

Of course, as the population increases, especially in major metropolitan areas, space becomes a scarce resource and becomes quite valuable. In a society which recognized no fundamental right to shelter or, like ours, can't seem to make up its mind as to whether such a right exists or not, the cost of such a necessary and scarce resource rises significantly.

Higher population density = higher cost of shelter, unless you intend to remove housing in whole or in part from the free market.

Of course, there are many other factors involved, such as location desirability, people's desire to get a bigger, better, more bourgeois house than they need, the 'your home is your greatest investment' ideology, and the greater turmoils of the economy to consider.

 

[uscitizen]

imho The main cause of the housing bubble was the conversion of homes to live in to investments and collateral for equity loans.

And auto loans are now up to what 72 months?

 

[Paulie]

imho The main cause of the housing bubble was the conversion of homes to live in to investments and collateral for equity loans.

And auto loans are now up to what 72 months?

I can get behind this. There was definitely more houses bought for the purpose of riding the wave and flipping later on, than to actually live in.

Too many people got caught with their pants down.

The packaging of the mortgages into securities that had less than accurate risk ratings is what ended up being the demise.