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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: John Vosilla who wrote (70962)10/4/2006 1:26:58 PM
From: mishedlo  Read Replies (1) of 110194
 
Exactly. Now that the speculators have left and all the stupidity of the last 3 years is done with it will be common place to pick up a lot of instant equity purchasing distressed real estate. Just because a house was worth $400k last year, is going to be worth $325k in 2007 and I buy it for $175k doesn't mean deflation in costs of goods and services I or anyone else needs on a daily basis.. Same with playing swings in the stock market or folks paying $3 or 2.25 per gallon for gas.. All I see is rising costs pretty much across the board these days with less overcapacity than we've seen in years. Only overbuilt housing submarkets with a ton of rentals or lack of end users seem to be the exception. Go to any city and middle class rents have gone up easily 20-30% since early 2005. Retailers also have to pass through in order to stay in business feeling the crunch on all sides.

Then why were you and everyone else here constantly pointing to to every price increase as inflation if all it really was was volatility?

Exactly which way do you want it?

Now you are harping about rents when before you were harping about home prices.

Exactly which way do you want it?

Retailers have the ability to pass on costs?!
Where? Not in restaurants, walmart, home depot, and for the last 15 months housing. Now you over look generic grugs dropping to $4 and Walmart sales slumping. Price pressures are NEGATIVE now.

Gasoline prices have dropped by 25%.

When gasoline price were rising you pointed to it as inflation. Now that they are falling you call it volatility. Which way do you want it?

You have a near unlimited capacity to call every rise inflation while dismissing every drop in prices as meaningless.

Heck you fail to understand or even see the inability of producers to pass on price increases as measured by the intermediate to final PPI costs.

You fail to understand the implications of your own sentence "Retailers also have to pass through in order to stay in business feeling the crunch on all sides".

Yes there is a crunch and that is because of inability to pass costs on. A second more serious crunch is coming when sales drop thru the floor on all kinds of goods and services like hair parlors and nail salons. Of course you ignore the implications of millions of supposedly employed real estate agents not making a dime for months.

You continue to look in the past, but worst of all do so with selective vision while ignoring current data to boot.

So which way do you want it?

Mish
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