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The rise in housing prices and rent adversely affects growth by destroying household disposable income and making people move to smaller and smaller accommodations. The Federal Reserve's insistence on pumping asset prices with ZIRP and QE has unintended consequences, only in so much as if they haven't seen what it did to Japan. Wake up America. This policy is destroying America's vibrancy even though on the surface it looks good in the short run. It is encouraging unsustainable debt, asset prices, and business decisions that are by nature anti-growth.
I understand there are many of you here who think it's good for housing to eat all the disposable income because your assets go up and some people get richer. The unintended consequence is disposable income drops and people get mad. If it gets as bad as Japan, Americans will not be as kind as the Japanese people who had to live through decades of a dead economy and now many live in cramped living conditions due to absurd housing prices.
If the Federal Reserve really wanted to help our economy it would support and encourage property housing devaluation. By making housing more affordable again people would have more disposable income. Oh, but then the bank's assets would devalue you'd get growth that could cause inflation, and then you'd have to end ZIRP like policies. Also you loose justification for QE and TOO BIG TO FAIL banks couldn't buy for cheap the assets of bankrupt people buying in yet another housing bubble with yet more ZIRP borrowing and QE.
Now you all can see why the Federal Reserve has failed to stimulate our economy. It's TOO BIG TO FAIL banker's interest is adverse to the very notion of a stronger economy. They like it where it is, they are the kings of free money and you are the worms with no power they eat when they choose. All that matters in this economy they like is who gets access to ZIRP money and it will never be you.
The rise in housing prices and rent adversely affects growth by destroying household disposable income and making people move to smaller and smaller accommodations. The Federal Reserve's insistence on pumping asset prices with ZIRP and QE has unintended consequences, only in so much as if they haven't seen what it did to Japan. Wake up America. This policy is destroying America's vibrancy even though on the surface it looks good in the short run. It is encouraging unsustainable debt, asset prices, and business decisions that are by nature anti-growth.
I understand there are many of you here who think it's good for housing to eat all the disposable income because your assets go up and some people get richer. The unintended consequence is disposable income drops and people get mad. If it gets as bad as Japan, Americans will not be as kind as the Japanese people who had to live through decades of a dead economy and now many live in cramped living conditions due to absurd housing prices.
If the Federal Reserve really wanted to help our economy it would support and encourage property housing devaluation. By making housing more affordable again people would have more disposable income. Oh, but then the bank's assets would devalue you'd get growth that could cause inflation, and then you'd have to end ZIRP like policies. Also you loose justification for QE and TOO BIG TO FAIL banks couldn't buy for cheap the assets of bankrupt people buying in yet another housing bubble with yet more ZIRP borrowing and QE.
Now you all can see why the Federal Reserve has failed to stimulate our economy. It's TOO BIG TO FAIL banker's interest is adverse to the very notion of a stronger economy. They like it where it is, they are the kings of free money and you are the worms with no power they eat when they choose. All that matters in this economy they like is who gets access to ZIRP money and it will never be you.
In the 1950's and '60's it was common to raise a family with multiple kids in only about 1000 sq ft. If we are moving slightly back toward that, maybe it's a good thing? The world can't support 7 billion people living like a typical American in an era of super-cheap credit and McMansions. Resources are limited.
The rise in housing prices and rent adversely affects growth by destroying household disposable income and making people move to smaller and smaller accommodations. The Federal Reserve's insistence on pumping asset prices with ZIRP and QE has unintended consequences, only in so much as if they haven't seen what it did to Japan. Wake up America. This policy is destroying America's vibrancy even though on the surface it looks good in the short run. It is encouraging unsustainable debt, asset prices, and business decisions that are by nature anti-growth.
I understand there are many of you here who think it's good for housing to eat all the disposable income because your assets go up and some people get richer. The unintended consequence is disposable income drops and people get mad. If it gets as bad as Japan, Americans will not be as kind as the Japanese people who had to live through decades of a dead economy and now many live in cramped living conditions due to absurd housing prices.
If the Federal Reserve really wanted to help our economy it would support and encourage property housing devaluation. By making housing more affordable again people would have more disposable income. Oh, but then the bank's assets would devalue you'd get growth that could cause inflation, and then you'd have to end ZIRP like policies. Also you loose justification for QE and TOO BIG TO FAIL banks couldn't buy for cheap the assets of bankrupt people buying in yet another housing bubble with yet more ZIRP borrowing and QE.
Now you all can see why the Federal Reserve has failed to stimulate our economy. It's TOO BIG TO FAIL banker's interest is adverse to the very notion of a stronger economy. They like it where it is, they are the kings of free money and you are the worms with no power they eat when they choose. All that matters in this economy they like is who gets access to ZIRP money and it will never be you.
Normally I don't agree with conspiracy theorists on here but I agree. ********** ridiculous housing appreciation. I hope places like the Bay Area crash hard.
In the 1950's and '60's it was common to raise a family with multiple kids in only about 1000 sq ft. If we are moving slightly back toward that, maybe it's a good thing? The world can't support 7 billion people living like a typical American in an era of super-cheap credit and McMansions. Resources are limited.
Too bad the 1,000 square foot ranchers cost 1 million dollars now. Good luck affording that.
It's all about supply and demand (not conspiracies). Many folks waited for their upside-down properties to get them back into an equity position ... without really realizing that a 'rising tide raises all boats.'
Rising housing prices have always been particularly tough on non-owners trying to save-up enough to buy a first home.
BTW, the notion of a Federally sponsored 'property devaluation' plan to help non-owners, would be paid for by property owners . While that's pretty typical of government programs, it hurts, rather than helps the overall economy.
I've been looking to buy my first home and it's tough where I live. I understand supply and demand and that some areas will always be more pricy. All I wish is that the government or whoever would limit the amount of properties than investors can buy or money laundering wealthy foreigners, etc. By all means, people can still make money from real estate, but the greed is out of control. I just want to buy a place to protect myself from the damn rent raises and I probably would've done so already if I was competing mainly with other middle class workers and not investors. For the record, I work in a shipyard and make decent money but still not enough to buy much out here.
Supply and demand. Start building homes. Better yet, start building smaller homes that the average family or person can afford. This might mean less profits for home builders, but it would add to the stability of the RE market I believe. Stop building things that people do not want, need and cannot afford.
Supply and demand. Start building homes. Better yet, start building smaller homes that the average family or person can afford. This might mean less profits for home builders, but it would add to the stability of the RE market I believe. Stop building things that people do not want, need and cannot afford.
I couldn't agree more. I just want to downsize to a smaller house - not a townhome or apartment - just a modest, 2-3 bedroom/2 bath home with a garage in an upscale-ish neighborhood. In my very high COL area (close-in metro DC suburb), such homes in my preferred neighborhoods are snatched up by developers, bulldozed, and replaced with crappy, ginormous, craftsman-style homes minimum 5,000-7,000 sq. ft. with prices starting in mid-$1M-$2M. And if I buy a small home, then I'll be the last standing in the block while all the other homes undergoing new builds tower over mine, and block my sunlight and views. If I buy a tear-down and build, it's the same problem given that I want a small house.
I've nearly given up - what I'm looking for is is thing of the past it seems. But not all homeowners want and 99.99% don't need a POS, overpriced, shoddily built McMansion.
Of course supply and demand, and if you chose to live and work where both those sides of that equation work against you, you might need to move. If home ownership is your goal.
Where I live in AZ, folks move here from Cali and get twice the house for 1/2 the price!
QE and low interest can sure help. And not just housing.
We bought a new Lincoln last year, and we don't usually buy new. But new this time was 0% interest for 60 months.
About 6 years ago I borrowed at 3% for an investment that still pays better than 12%. And I have used gains to pay off the loan.
Supply and demand. Start building homes. Better yet, start building smaller homes that the average family or person can afford. This might mean less profits for home builders, but it would add to the stability of the RE market I believe. Stop building things that people do not want, need and cannot afford.
Builders aren't building smaller houses because it's cost prohibitive. Building codes and gov't regulations are making it impossible to have what we had in the past.
I'm seeing townhouses and condo's being built to service that particular demand.
You can buy a 1960 or older house for $150,000 plus and spend $25,000 re-furbing it, IF you can get financed.
Last edited by tommy64; 07-09-2016 at 04:05 PM..
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