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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: bentway who wrote (41962)9/25/2005 10:58:15 AM
From: RarebirdRead Replies (1) | Respond to of 306849
 
>>We have yet to see any salary inflation. Will we see any, with globalized competition?<<

The US Labor Department said last week that labor costs increased 2.5 percent from April through June and were up 4.2 percent from a year earlier. This is the biggest rise since the third quarter of 2000. The cause is simple. Consumers, acting as producers, try to make up their losses from higher prices by asking or demanding higher wages and salaries. When they get them, business costs go up while earnings go down at the same time as businesses are looking at slowing or falling sales. Then, their earnings fall.



To: bentway who wrote (41962)9/25/2005 2:00:27 PM
From: John VosillaRead Replies (1) | Respond to of 306849
 
"We have yet to see any salary inflation. Will we see any, with globalized competition? This could be a worse situation for Americans than the bad old days of stagflation"

Seems logical. We have had dramatic increases in incomes for folks tied to the real estate industry. Could be a major hit when new home construction and values collapse.