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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (21896)	7/19/1998 9:55:00 PM
From: HairBall	Read Replies (1) \| Respond to of 94695

Bobby: Now if we go into major deflation in this country. How does this country pay its debt? Devaluation of the dollar is the only way this country can honor its debt, if the bottom falls out of the economy, for an extended period of time! (Inflate the debt away.) The worst of both worlds, depression through inflation! Not a pretty thought! Regards, LG

To: bobby beara who wrote (21896)	7/19/1998 10:02:00 PM
From: Bonnie Bear	Read Replies (3) \| Respond to of 94695

bobby: hard to believe the deflation story when the price of groceries at the store have gone up (especially fresh produce), gas prices at the pump are unchanged (still $1.40 here), house prices and rents have increased by 30%, HMO prices have gone up over 10% and utilities went up 4% within the last year. I'd like to think this is localized to Northern California. Since 50-70% of disposable income in CA goes into housing, I think housing prices are the best indication of inflation- and they have been keeping up with the stock market. Curious to note that this is true throughout the globe, house prices went up 50% in Ireland and down 40% in Hong Kong. I don't know anyplace in the U.S. where housing costs match the fed numbers. The only way someone could match the fed numbers is if they don't own a car, rent a room with shared bath, eat at McDonalds and buy a secondhand computer from a garage sale. Maybe this is Joe Average, but this doesn't seem to match the Bill Clinton america. I don't see the market dropping until unemployment goes much higher.

To: bobby beara who wrote (21896)	7/19/1998 10:28:00 PM
From: Bonnie Bear	Read Replies (1) \| Respond to of 94695

bobby: numbers from Yardeni's web site: mean income 18,000 money spent per year: rent/util 3300 food 2600 medical 3100 transp 2100 recreation 1800 personal business 1500 clothing 1100 Presumably this leaves 2000 a year to fund one's IRA . Now: stupid question from the audience #1. so I add this up and I can't find where you put social security, state and federal tax, medicare and health care "deductions". stupid question #2. so how are so many people buying houses unless they're putting no money down and going up to debt to their armpits? stupid question #3. If income has stayed flat for so long then where is all this mutual fund money coming from? Did most of it come from the 1993 home refinancing boom and represents debt pulled out of home equity? hmm.... BTW if anybody knows a place where I can get rent and utilities for $275 a month, please let me know...