| reply to disconnected
Re: Wal-Mart CEO Warns of Serious Price Inflation said by disconnected : A house is a shelter and a home. Not a commodity to be traded like pork bellies.
You might think differently if you were a hog farmer. To them pork bellies (bacon) are a food item that they provide as a service and not an item to be capitalized on by speculators. Speculation in any industry hurts the actual producer and deflects income/profits to a third party (the speculator). Speculation rarely benefits the actual producer. If it didn't benefit the speculator, there would be no speculation. |
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 MrMoodyFree range slavePremium
join:2002-09-03
Smithfield, NC | said by Waterbug: You might think differently if you were a hog farmer. To them pork bellies (bacon) are a food item that they provide as a service and not an item to be capitalized on by speculators. Speculation in any industry hurts the actual producer and deflects income/profits to a third party (the speculator). Speculation rarely benefits the actual producer.
And hurts the consumer. It's parasitic. This goes for basically all consumable commodities. If only producers and users of the commodity were allowed to speculate in it, that would solve the problem while still allowing producers to hedge against trouble as well as diverting the investor money into the stock market where it would do good instead of bad.
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The obstruction of our energy infrastructure has led us into being the world's policeman.-Karl Denninger,market-ticker.org |
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 J E F FWhatta Ya Think About Dat?Premium
join:2004-04-01
Kitchener, ON
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| reply to Waterbug
said by Waterbug: I hate to say it, but inflation is the only thing that is going to cure the housing market. I realize that families will have less money for housing, but the cost of housing will inflate, like everything else, and return equity to home owners. who are currently under water.
Price if houses will only inflate if wages inflate. Keep in mind too, with inflation comes higher interest rates, making every $100,000 mortgaged that much more money. Inflation might cure the deficit (in the long run) but not the housing market, as the house prices are still way out of line with everything else.
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If you can't explain it simply, you don't understand it well enough. - Albert Einstein |
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| said by J E F F:said by Waterbug: I hate to say it, but inflation is the only thing that is going to cure the housing market. I realize that families will have less money for housing, but the cost of housing will inflate, like everything else, and return equity to home owners. who are currently under water.
Price if houses will only inflate if wages inflate. Keep in mind too, with inflation comes higher interest rates, making every $100,000 mortgaged that much more money. Inflation might cure the deficit (in the long run) but not the housing market, as the house prices are still way out of line with everything else. Property and wages don't have a direct relationship when it comes to inflation. My property value as gone up 5.7% between January 2010 and March 2011 verified via a $400 bank ordered appraisal. I could only dream of getting a 5.7% wage increase!
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"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." -Warren Buffett |
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