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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (86397)	9/5/2016 5:10:19 PM
From: Drygulch Dan	1 Recommendation Recommended By Hawkmoon Read Replies (2) \| Respond to of 222047

I would characterize money velocity as low and going lower. Maybe that is terrible, I am not sure. I think it means people do not have money to spend above and beyond normal purchases, food, transportation, etc. Yet I don't see this downturn as I wander around in my life. I see near continuous government subsidized road construction going on wherever I drive, airplanes full to where the airlines are forced to offer financial incentives to passengers to release seats. Plus I see a resurgence of building in the central California area as well as increasing building in the Carson Valley area of Nevada. Plus I see a lot of cars and trucks on the roads. How to explain this ? Perhaps this dichotomy can be explained by more people working more for lesser income and more methods of compensation not being tracked by money supply numbers such as air line credit points, etc. For example my recent round trip San Francisco to San Juan and return was primarily paid by points. The outbound flights debited my point base by 17,500 and an additional $80 due to close in schedule. Coming back was cheaper at only $5 plus another 17,500 points. One leg of which I upgraded my seat for $89 to position myself closer to the door due to the short ground time at the intermediate transfer airport. So I spent a total of $174 for the four flight legs as well as 35,000 points to cross the country and then some in two directions. As far as building of new homes is concerned there was a terrible down turn in building about 10 years ago and perhaps this rebound is just a reflex due to pent up demand. Just some random thoughts to consider.