SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Vosilla who wrote (93822)5/12/2008 11:21:36 AM
From: sea_biscuit  Read Replies (4) of 110194
 
Here is more crazy stuff from Mish. Now, he is implying that the $200K fall in home prices puts more money in our pockets so that we will have no problem paying more for cucumbers, peppers, milk, gasoline or eggs!

Incredible! And I thought the folks at the Fed and BLS were the nuttiest folks around!

Here's Mish quoted verbatim from a recent blog :

"But let's be serious here: It takes one hell of a lot of increases to make up for falling home prices. A $200,000 decline in the price of a home (or even a $50,000 decline) is several orders of magnitude more important than the doubling of the price of cucumbers, milk, or eggs.

However, people do not buy houses every week although they may buy milk and gasoline every week. So inflationists have everyone screaming inflation when the big picture is falling asset prices and banks in a mad scramble to raise capital.

The mad scramble to raise capital proves there is "mark to market" credit contraction because Citigroup and others would hardly be raising money at 8%+ with the Fed Funds rate at 2.00% were it not the case.

So while some point out rapidly rising prices of peppers, milk, and gasoline, it's important to remember that $200,000 will buy one hell of a lot of the above."
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News