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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (2243)	5/11/2001 4:31:30 PM
From: Ahda	Read Replies (1) \| Respond to of 24758

Inflation can easily arise without an increase in demand. It can rise with a fall in final demand. Isn't that rather like saying if you hold on tight enough you can have a no demand economy but a costly one? I have been looking at housing costs in areas considered decent within west LA. The average price seems to work out to about seven hundred thousand for a three bedroom. Inflation can easily arise without an increase in demand. There aren't that many people looking at houses that are for sale. It can rise with a fall in final demand There aren't that many houses for sale. Houses are going up in price period. Demand or no demand in certain areas this i see and does this mean until costs exceed buyers ability and sellers have to rethink value due to need of income. Or does it mean the two hundred exclusion is not so appealing when the risk factor of buying property is starting to increase. The two hundred thousand benefit means little in a less confident market where the potential is starting to look like a two hundred thousand reduction in price. Calm before the storm?

To: ahhaha who wrote (2243)	5/15/2001 3:22:07 PM
From: ahhaha	Read Replies (2) \| Respond to of 24758

I hope no one thinks the FED action is bullish, since they do it because they haven't been able to revive falling final demand adequately by their previous actions. What they are doing is propping prices which exacerbates the effective cost of production with an attendant slowing ability to get revenue to pay those effective rising costs. So their pumping is accelerating effective deflation! I had said this some months ago in my remarks that interventionism causes prices to rise more than output. The equivalent notion is that interventionism causes profits to fall faster than prices.