Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (168505)	12/2/2008 10:22:43 PM
From: patron_anejo_por_favor	Respond to of 306849

Frankly it surprised me they picked someone who'll actually do a good job......she came to my attention first in her vocal opposition to the bankruptcy bill a couple years ago (obviously an area she's well-versed in).

To: MulhollandDrive who wrote (168505)	12/2/2008 10:33:14 PM
From: MulhollandDrive	Respond to of 306849

well since she is saying what i've been saying in more simplistic terms: "it's the borrower, stupid" i'm very hopeful indeed <g> If the answer is that banks do not have money to lend, it would make sense to push capital into their hands, as the Treasury has been doing over the last two months, she continued. But if the answer is that their potential borrowers are getting less creditworthy with each passing day, “pouring money into banks isn’t going to fix that problem,” she said. ~elizabeth warren

To: MulhollandDrive who wrote (168505)	12/3/2008 11:24:39 AM
From: ChanceIs	Read Replies (6) \| Respond to of 306849

>>>elizabeth warren is excellent.......collapse of the middle class:<<< I took the time to watch the video - one hour. It is a must listen. A brief synopsis: 1)Flat/declining real male wages since '71 2) Household income up only because of second income, 3) Despite the above, net income negative - no or negative savings. 3) Expenses: Those which are down - clothing (5%), per car costs (5%), food (5%?). Those which are up - housing (70%), health care insurance (74%), day care (didn't exist in '71), automobile 30% - didn't have/need/use two cars in '71). Note that those expenses which increased are basically inflexible. 4) The family risk profile is way, way up. Both incomes are necessary. The risk of job loss - and resulting default - is greater because two workers are now exposed to the probability of loss of work. 5) Family house costs are way up relative to childless because people will pay a lot more for quality schools. My interpretation: 1) The US middle class is extended like never before, 2) We will be in a very strongly vicious cycle as more jobs are lost and mortgages default, 3) House prices will continue to fall and there is nothing the government can do about it. Fundamentally the government will have to take over making mortgage payments or replace one salary. Yes we will have the Obama stimulus but there will be little effect for nine months, and it may not occur in the geographic region needed most. 4) The economy will be stagnant for un plus longtemps. 5) Roubini talks "Stag-Deflation." I certainly think he is correct on the stagnation part. Jimmy Rogers says that the current apparent deflation isn't deflation at all - rather a forced sell-off. This is not the prolonged grinding broad price drops of the 1930s. He then talks commodity inflation. I like to think that I am in both camps, but more Rogers than Roubini.