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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Follies who wrote (115424)	1/8/2016 11:42:23 PM
From: Elroy Jetson	2 Recommendations Recommended By Mannie stsimon Read Replies (1) \| Respond to of 219396

As all income growth has become restricted to the top 1%, economic demand has tanked. Those who would spend can't or suspect they shouldn't, while those with more income merely place most of this new money in their money-drawer with the rest of their money. Most of our new money goes into the money-drawer with the other money, and for the past couple of months that's all been in cash. Spending? It continues steadily apace, but nothing new or spectacular. I must admit at home we don't even have smart-phones, we have smart-phones only for travel. I see lots of new commercial buildings and apartment buildings being built in Los Angeles, in spite of vacancies in existing properties. And this construction is the bright point in the economy. It's easy to hit long-term investment targets when you can borrow money for little and achieving a 2.5% annualized return seems impressive. Fortunately my family's commercial real estate is located in the San Francisco Bay Area where IPO-sourced money continues to pour. Low rates and freely available money at least make that happen. But there's a much slower transformation of small homes into mini-mansions and the addition of condo, but the volume of this is restricted by the slow pace of sales at the back-end. Very few people in Los Angeles seeme drawn to cocoon in lavish new homes with 103% financing and the option to skip any 36 monthly payments of your choice, which is no longer available even if they wanted to do so. Like the 1930s there's too many producers of just about everything, so the prices of most everything continue to fall - to the consternation of those unfamiliar with economic concepts, who thought a huge growth in "money supply" should have produced 65% annual inflation by now. Still there's a profit for those whose new technology can do more for less, but they need to be able to drive that forward.