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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (69826)	9/15/2006 2:38:37 PM
From: the_wheel	Respond to of 110194

OK, I went back like you suggested to "do some math". I noticed the math was OK, just that the assumption that "future value of housing services" was unrelated to the "future worldwide inflation expectations", was incorrect. You "discounted" the "future value" of money, but didn't "discount" the "future value of the services". Because the "house service" is fixed doesn't mean the "value of house service" is fixed. I just thought it was kind of funny that you would write one thing about your sister, then post shortly after the opposite using some big words which tried to say something obviously wrong with a pompous argument. It sounded like you got it off the BS generator site, usually your stuff is clear and straight forward. Fool me once, shame on you. Fool me twice, well, won't get fooled again.

To: GraceZ who wrote (69826)	9/15/2006 7:20:20 PM
From: rayok	Respond to of 110194

"Houses aren't bought on a whim, for most this is the largest financial decision they will ever make. When either of these conditions changes (inflation expectations and lifetime earnings) in a large way people adjust their long term financial plans." Many people simply think, "if the the bank will lend, I will own. If the bank forecloses, I will no longer own". "Most people buy houses for the services that house provides and they do assign a value to those services" Most people simply refer to that as, "the purchase price".