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

To: gpowell who wrote (46939)	1/11/2006 12:49:38 PM
From: shades	Read Replies (2) \| Respond to of 306849

The majority of us domestic savings reside in real estate - but this is where you lose me: That, as should be evident, is not possible, as that is equivalent to saying that households are misallocating resources by choosing one brand of soap of another I remember in 97 or so reading an article about these beautiful condo's being built in asia - they sat empty and as time went on the grass and trees began to reclaim this beautiful development as no one ever lived there. It was strange to me to see brand new beautiful developments just sit empty and grass grow and overtake it. Now can that not happen here? I understand Japan couldn't or wouldn't import the people/migrants to fill up all that excess development - but just assuming hillary wins the next election and bases her campaign on plugging the borders would that not be a possibility? You say it should be evident - but it is not evident to me. If you buy coast soap or ivory soap and pay for it by selling off your farm as Buffet claims we are doing - isn't that a foolish action long term? How is it leading to socialism when buffet says that buying 200 dollar nike shoes and 10 dollar starbucks coffee by selling off our farm is stupid? The last time I went to buy a TV - all made overseas - same for most of the stuff in my house and car. I dont think buffet is saying you are an idiot because you buy bud lite over michelob - but that you are paying for it by going deeper and deeper into debt and that is dumb. I think benson and stiglitz are saying we have to inflate - our gubbment policy is inflation - without inflation we will have deflation - ala japan and we can't allow that. households have used their savings directly in the production of housing That development - it was so beautiful gpowell - the one in asia - they had tile floors, there were fountains and beautiful golf courses, they had those toilets that shot a stream of water up your butt instead of having to use toilet paper - real trendy you know - but they had no people and eventually the grass over ran it and hundreds of millions of dollars just went POOF I guess - it was spent, the buildings built, but not used - like bridges to nowhere. acting as entrepreneurs by responding to their own demand Those slant guys are really smart - all the cool gadgets are made in asia eh? how did they pump hundreds of millions of dollars into that development and then no one moved into it - the demand was there right? how did things get so misallocated? did socialism come in and fix the misallocations of capitalism?