Comments on: What’s ahead of us if housing/mortgage mess is not cleaned up http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/ A site to share my tips, tools, and humble thoughts on the journey to wealth Tue, 27 Jul 2010 22:24:37 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Living Off Dividends & Passive Income http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/comment-page-1/#comment-3972 Living Off Dividends & Passive Income Mon, 10 Mar 2008 19:51:21 +0000 http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/#comment-3972 i like to tell my friends like it is. only they don't really believe me. Just like they didn't believe me when gold was $500 and I said it was going to $3000. Or back in summer of 2005, when I said home prices in San Diego were going drop 45% (they currently at 30% discount from the peak). Or when I said oil prices were going to double to $100/barrel. People believe whatever they want to. it has no bearing on reality whatsoever! i like to tell my friends like it is.

only they don’t really believe me. Just like they didn’t believe me when gold was $500 and I said it was going to $3000. Or back in summer of 2005, when I said home prices in San Diego were going drop 45% (they currently at 30% discount from the peak). Or when I said oil prices were going to double to $100/barrel.

People believe whatever they want to. it has no bearing on reality whatsoever!

]]> By: Frugal http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/comment-page-1/#comment-3934 Frugal Tue, 04 Mar 2008 08:28:34 +0000 http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/#comment-3934 I don't think US has any options besides inflating away the massive debts at every levels. I have predicted a <a href="http://www.1stmillionat33.com/2006/09/charts-on-housing-markets-us-economy/" rel="nofollow">moderate to high level of inflation for the next 6 to 10 years at least back in 2006</a>. US dollar must fall, or else a serious economic depression will develop. What's the most important is the focus of today's post, making the printed money to go to the right people. Although it's probably not very likely, wages must inflate along. Otherwise, stagflation is with us. I definitely agree that wealth distribution is a serious problem. But that is the inherent problem with globalization and capitalism. I actually believe that in the next century, there will be a new way of running economics, not communism, not socialism, not capitalism, but something else. Capitalism leads to violent extremes, and concentrated wealth. Once it's broken too many times, people will eventually come up with a new and better system. But that's thinking too far ahead of my life span. I don’t think US has any options besides inflating away the massive debts at every levels. I have predicted a moderate to high level of inflation for the next 6 to 10 years at least back in 2006. US dollar must fall, or else a serious economic depression will develop.

What’s the most important is the focus of today’s post, making the printed money to go to the right people.

Although it’s probably not very likely, wages must inflate along. Otherwise, stagflation is with us.

I definitely agree that wealth distribution is a serious problem. But that is the inherent problem with globalization and capitalism. I actually believe that in the next century, there will be a new way of running economics, not communism, not socialism, not capitalism, but something else. Capitalism leads to violent extremes, and concentrated wealth. Once it’s broken too many times, people will eventually come up with a new and better system.

But that’s thinking too far ahead of my life span.

]]> By: Kirk http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/comment-page-1/#comment-3933 Kirk Tue, 04 Mar 2008 00:46:14 +0000 http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/#comment-3933 We don't need the government to help. They are the reason we are in this mess. Massive deficit spending is helping to depreciate our dollar. Plus, anytime the economy slows the Prez is on tv asking us to spend, spend , spend. What we need is for the dollar to strengthen. This can only happen as deficits shrink and consumers start to save. If we did these two things, our economy would get better much faster. We don’t need the government to help. They are the reason we are in this mess. Massive deficit spending is helping to depreciate our dollar. Plus, anytime the economy slows the Prez is on tv asking us to spend, spend , spend. What we need is for the dollar to strengthen. This can only happen as deficits shrink and consumers start to save. If we did these two things, our economy would get better much faster.

]]> By: pointsman http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/comment-page-1/#comment-3931 pointsman Mon, 03 Mar 2008 20:22:32 +0000 http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/#comment-3931 I think one of the biggest flaws of our economy is cultural. It has to do with the unequal distribution of wealth that we seem to champion. You should read the Wikipedia entry for The Great Depression, the quote from Marriner S. Eccles. He basically makes the point that the concentration of income that leads to more and more capital investment cannot be sustained if it forces earners at the bottom to go into debt to support the new production. You can only extend so much debt before consumers stop spending and instead attempt to pay the debt off. This inevitably leads to less demand, less income, less employment. The wealthy should see that it's in their best interest to compensate everyone with a living wage. If they want the game to continue, everyone must have chips to participate. Business is already greatly subsidized by the government, that is their payoff for investments in lobbying. I like the idea of a large scale deduction for homeowners. It would be mutually beneficial to consumers, govt, and big business. But we won't fix things until we reach a balance between sustainable levels of income and debt. I think one of the biggest flaws of our economy is cultural. It has to do with the unequal distribution of wealth that we seem to champion. You should read the Wikipedia entry for The Great Depression, the quote from Marriner S. Eccles. He basically makes the point that the concentration of income that leads to more and more capital investment cannot be sustained if it forces earners at the bottom to go into debt to support the new production. You can only extend so much debt before consumers stop spending and instead attempt to pay the debt off. This inevitably leads to less demand, less income, less employment.

The wealthy should see that it’s in their best interest to compensate everyone with a living wage. If they want the game to continue, everyone must have chips to participate. Business is already greatly subsidized by the government, that is their payoff for investments in lobbying. I like the idea of a large scale deduction for homeowners. It would be mutually beneficial to consumers, govt, and big business. But we won’t fix things until we reach a balance between sustainable levels of income and debt.

]]> By: lakshmanan http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/comment-page-1/#comment-3929 lakshmanan Mon, 03 Mar 2008 14:24:04 +0000 http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/#comment-3929 You might be right in your analysis. What does government do.. whats the scope of investments going out to developing country and poor countries.. To me USA has been monopoly in worlds market which need to change.. but not the phase you mentioned. I was thinking more of slow drift towards global economy for greater good. You might be right in your analysis. What does government do.. whats the scope of investments going out to developing country and poor countries.. To me USA has been monopoly in worlds market which need to change.. but not the phase you mentioned. I was thinking more of slow drift towards global economy for greater good.

]]> By: westwest888 http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/comment-page-1/#comment-3927 westwest888 Mon, 03 Mar 2008 13:37:37 +0000 http://www.1stMillionAt33.com/2008/03/whats-ahead-of-us-if-housingmortgage-mess-is-not-cleaned-up/#comment-3927 Frugal- I figured out the stealth agenda for the stimulus package. It's a $160B bank bailout. As soon as you get your check, you can put it checking, put it in savings, or pay off debt with it. It's like government is paying off $160B of consumer debt to help us help the banks. Then they'll tax us later when we can afford to pay off the debt they took out for it. In this sense, it was a good move. That money will enable at least $1 trillion in new lending, providing further liquidity. Frugal-

I figured out the stealth agenda for the stimulus package. It’s a $160B bank bailout. As soon as you get your check, you can put it checking, put it in savings, or pay off debt with it. It’s like government is paying off $160B of consumer debt to help us help the banks. Then they’ll tax us later when we can afford to pay off the debt they took out for it.

In this sense, it was a good move. That money will enable at least $1 trillion in new lending, providing further liquidity.

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