Comments on: Class, repeat after me, SoCal affordability is Abysmal http://www.socalbubble.com/2006/02/class-repeat-after-me-socal.html Southern California is Experiencing a Real Estate Bubble like never before Fri, 04 Feb 2011 01:16:46 -0700 hourly 1 http://wordpress.org/?v=3.1 By: John Doe http://www.socalbubble.com/2006/02/class-repeat-after-me-socal.html/comment-page-1#comment-212 John Doe Mon, 06 Mar 2006 16:20:00 +0000 http://www.socalbubble.com/2006/02/class-repeat-after-me-socal.html#comment-212 Gary Anderson,<BR/><BR/>Well said. It's easy to debate either side of this. While Bernanke is an unknown quantity now, I think pretty much whatever he does will surprise someone.<BR/><BR/>I am hoping for a simply asset deflation personally, but it's not clear since he has made his intentions clear that he tries to mop up afterwards. <BR/><BR/>BTW, I'm not sure that with our RE-centric economy that you can protect "jobs" with higher interest rates. In fact, lower interest rates would increase damage the dollar (which needs to be hurt to keep jobs here). It would have the double-whammy of bringing us off of the debt-induced home binge of the last decade. Gary Anderson,

Well said. It’s easy to debate either side of this. While Bernanke is an unknown quantity now, I think pretty much whatever he does will surprise someone.

I am hoping for a simply asset deflation personally, but it’s not clear since he has made his intentions clear that he tries to mop up afterwards.

BTW, I’m not sure that with our RE-centric economy that you can protect “jobs” with higher interest rates. In fact, lower interest rates would increase damage the dollar (which needs to be hurt to keep jobs here). It would have the double-whammy of bringing us off of the debt-induced home binge of the last decade.

]]> By: desi dude http://www.socalbubble.com/2006/02/class-repeat-after-me-socal.html/comment-page-1#comment-213 desi dude Wed, 01 Mar 2006 01:52:00 +0000 http://www.socalbubble.com/2006/02/class-repeat-after-me-socal.html#comment-213 when you have china pegging yuan artificially low, walmart squeezing last peeny out of manufacturers, labor in china and india at a fraction of the cost, you will low inflation, infact cost of good produced is going down.<BR/><BR/>also inflation is how you measure it? if as Contrarian Chronicles says, any rise in the price of an item is counter acted by replacing it with an item of lower cost, inflation will never go up.<BR/><BR/>As it is Food and energy are taken out!. because gas cannot be replaced by anything else, neither is milk! when you have china pegging yuan artificially low, walmart squeezing last peeny out of manufacturers, labor in china and india at a fraction of the cost, you will low inflation, infact cost of good produced is going down.

also inflation is how you measure it? if as Contrarian Chronicles says, any rise in the price of an item is counter acted by replacing it with an item of lower cost, inflation will never go up.

As it is Food and energy are taken out!. because gas cannot be replaced by anything else, neither is milk!

]]> By: Gary Anderson http://www.socalbubble.com/2006/02/class-repeat-after-me-socal.html/comment-page-1#comment-214 Gary Anderson Wed, 01 Mar 2006 01:34:00 +0000 http://www.socalbubble.com/2006/02/class-repeat-after-me-socal.html#comment-214 I disagree with Contrarian Chronicles on this one. While it is possible that inflation could occur, Bernanke has always said that job growth is the primary concern and that this must be continued through the effort to make the dollar strong. I do see him trying to stop inflationary pressures. Look at how little inflation we have considering the enormous influx of easy money in the past three years. If you guys don't remember inflation in the 70's, prices were being changed weekly or more. That is real inflation. I look for downward pressure on wages continuing as America seeks to be competitive with other economies. Add to this union busting and outsourcing and you have downward, deflationary pressures. So, I believe, though it could be otherwise, that short term rates will continue to rise, and arms will adjust, and Bernanke will clean up the mess of the housing bubble bursting just as Greenspan cleaned up the dot com bust. However, where the next bubble is formed is anybody's guess. I disagree with Contrarian Chronicles on this one. While it is possible that inflation could occur, Bernanke has always said that job growth is the primary concern and that this must be continued through the effort to make the dollar strong. I do see him trying to stop inflationary pressures. Look at how little inflation we have considering the enormous influx of easy money in the past three years. If you guys don’t remember inflation in the 70′s, prices were being changed weekly or more. That is real inflation. I look for downward pressure on wages continuing as America seeks to be competitive with other economies. Add to this union busting and outsourcing and you have downward, deflationary pressures. So, I believe, though it could be otherwise, that short term rates will continue to rise, and arms will adjust, and Bernanke will clean up the mess of the housing bubble bursting just as Greenspan cleaned up the dot com bust. However, where the next bubble is formed is anybody’s guess.

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