Is capatalism failing?

[Atilla]

House prices aren't included in the CPI are they? If they were your argument would be valid. Besides how do you explain a 13% drop in the asking price of a property I've been tracking?

Reversal to the trend line from bubbles...

So when is price increases really inflation - current level is 3.4%???

 

[maiden22]

House prices aren't included in the CPI are they? If they were your argument would be valid. Besides how do you explain a 13% drop in the asking price of a property I've been tracking?

The vendors have had maybe a 30% - 50% dose of realism ?

Don't put in an offer just yet .

 

[Atilla]

just watched an interview with that retard peter schif going on about the economy and gold.

someone put the question to him, "what if the economy recovers"

he wouldnt even accept it as a possible outcome, would not, could not happen. GOLD BITCHES (to qoute the zerohedge masses)

what a idiotic way of thinking, to not even take into account the counter argument. big like yourself attilla

You going to answer the question or not?

What level of price increases will you accept as inflation?


As for GOLD - weren't you the one bitching about it dropping like a brick at $900s???

What is the price of gold now dude?

Your speciality subject is - being retarded. I guess retard represents 50% of your vocabulary... I'll have to start calling you Mr Binary see if you can work it out? :cheesy:

 

[Atilla]

In percentage terms, I made as much money in 6 months investing in Palladium as I did with property over 10 years. I don’t know enough about wine and there is also the problem with storage...but if someone was to create a wine ETF:idea:

I'm sure there are a number of other asset classes that is likely to return higher % than investing in property.

But most people don't have access or the knowledge to trade these instruments.

Mixed portfolio of assets is best. I'd include stamps and wine in that list too. What ever works. I'd make an exception to modern art though. People tastes are fickle - one never knows...

 

[new_trader]

Reversal to the trend line from bubbles...

So when is price increases really inflation - current level is 3.4%???

I want to make my point clear. I think there will be inflation, right or wrong, I am preparing for inflation. I just can't fathom how you are so convinced that house prices and inflation are rigidly linked.

 

[new_trader]

I'm sure there are a number of other asset classes that is likely to return higher % than investing in property.

But most people don't have access or the knowledge to trade these instruments.

Mixed portfolio of assets is best. I'd include stamps and wine in that list too. What ever works. I'd make an exception to modern art though. People tastes are fickle - one never knows...

This is my point! 'Sheeple' are brainwashed by Governments and vested interests who want people on the debt treadmill, that houses ought to be bought because they are the best.

 

[N Rothschild]

You going to answer the question or not?

What level of price increases will you accept as inflation?


As for GOLD - weren't you the one bitching about it dropping like a brick at $900s???

What is the price of gold now dude?

Your speciality subject is - being retarded. I guess retard represents 50% of your vocabulary... I'll have to start calling you Mr Binary see if you can work it out? :cheesy:

i cant answer it as i dont give a toss, i can answer it for America though. and there is 0 inflation in America. and thats all that matters!

yes was wrong on gold, still hold same long term view.

regarding bubbles, when a bubble bursts, prices will go lower than equilibrium before returning to equilibrium.

this can be seen in that house prices chart perfectly.

except you say this wont be the case and prices wont fall anymore?

just because you own 3 council estate flats on 95% mortgages and you WANT/NEED prices to rise, doesn't mean they will.

 

[Atilla]

I want to make my point clear. I think there will be inflation, right or wrong, I am preparing for inflation. I just can't fathom how you are so convinced that house prices and inflation are rigidly linked.

I'm using layman's approach here.

Historical house prices. We (my parents) almost bought an old Victorian house in Stamford Hill around late 1970s for £40K. This was a massive 3 storey house with a basement flat. We looked at it liked it but said it had too many stairs to be running up and down and mum considered keeping the house tidy and some how we didn't.

It looked like this one here -

http://www.rightmove.co.uk/property-for-sale/property-10373607.html

I'm not going to work out the % sums... My head hurts. :whistling

 

[robster970]

House price inflation will only occur if the masses are prepared to pay for assets that are inflating through the supply of cheap money and sufficient leverage to finance the purchase of the asset. Retail banking is not providing cheap money any longer commensurate with the degree of leverage it was applying up until '07. Likewise the ability to release equity from the asset back into the economy has disappeared because the housing market has flat-lined. The conveyer has stopped.

Conversely, a huge amount of money has been pumped into the 'economy'. It's only a matter of time before this works it's way from the balance sheet of the banks into the real economy.

So are we likely to see inflation? Probably due to money supply into the economy. Are we likely to see asset price inflation, specifically property? Unlikely as the public can't get cheap money because of the reduced leverage applied to property purchase. Net result? House prices may remain static as the market stagnates slowly but in real terms, property will devalue as inflation takes hold.

Why you guys are having an argument over RPI vs asset price inflation seems a bit odd.

 

[Atilla]

i cant answer it as i dont give a toss, i can answer it for America though. and there is 0 inflation in America. and thats all that matters!

Not quite... Google on this... http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx?dsInflation_currentPage=0


yes was wrong on gold, still hold same long term view. I think gold will never drop below $800 ever again. Those $250-400 levels are history.

regarding bubbles, when a bubble bursts, prices will go lower than equilibrium before returning to equilibrium. True.

this can be seen in that house prices chart perfectly. True. Trends can change too...

except you say this wont be the case and prices wont fall anymore? No they will not fall. I stick my neck on the guillotine. Not unless inflation falls.

just because you own 3 council estate flats on 95% mortgages and you WANT/NEED prices to rise, doesn't mean they will. There is that chip on your shoulder again. Feeling inadequate again are we??? :cheesy:

Your psychology is very interesting dude...

No capitals but for 'A'merica and for WANT/NEED. You ok?

 

[N Rothschild]

In percentage terms, I made as much money in 6 months investing in Palladium as I did with property over 10 years. I don’t know enough about wine and there is also the problem with storage...but if someone was to create a wine ETF:idea:

quite a few wine funds out there

 

[N Rothschild]

how are people going to pay for these rising house prices? when consumer credit is contracting at its fastest pace in history?

no one has any money.

no one is lending money.

 

[Atilla]

House price inflation will only occur if the masses are prepared to pay for assets that are inflating through the supply of cheap money and sufficient leverage to finance the purchase of the asset. Retail banking is not providing cheap money any longer commensurate with the degree of leverage it was applying up until '07. Likewise the ability to release equity from the asset back into the economy has disappeared because the housing market has flat-lined. The conveyer has stopped.

Conversely, a huge amount of money has been pumped into the 'economy'. It's only a matter of time before this works it's way from the balance sheet of the banks into the real economy.

So are we likely to see inflation? Probably due to money supply into the economy. Are we likely to see asset price inflation, specifically property? Unlikely as the public can't get cheap money because of the reduced leverage applied to property purchase. Net result? House prices may remain static as the market stagnates slowly but in real terms, property will devalue as inflation takes hold.

Why you guys are having an argument over RPI vs asset price inflation seems a bit odd.

Yes, this is a possibility. I hold 'only' the view that house prices will maintain value in keeping inline and probably on balance based on passed evidence ahead of inflation.

This is the only point I'm making. I may well be wrong. Point made. Period.

I'm not in denial or hoping. Don't get carried away with the wind-ups.

 

[counter_violent]

Fek sakes...are we still on about this...I told ya all 2 yrs ago ...stagflation..houses down..wages down....jobs down....and if spiral cycles get a hold....might get a whole lot worse...middle America will start to default on their assets....then watch what happens to the banks.

 

[Atilla]

Fek sakes...are we still on about this...I told ya all 2 yrs ago ...stagflation..houses down..wages down....jobs down....and if spiral cycles get a hold....might get a whole lot worse...middle America will start to default on their assets....then watch what happens to the banks.

They pay bigger bonuses for bigger fek stakes? :cheesy:

 

[montmorencyt2w]

If you like your doom overladen with gloom:

(I don't necessarily agree with what it says - link provided for entertainment value only -) )

 

[N Rothschild]

anyway back on topic

could there be a resurgence of fascism due to the currentl climate?

 

[maiden22]

anyway back on topic

could there be a resurgence of fascism due to the currentl climate?

Very unlikely.

Mind you, the West as a whole is about due for Gibbon to get his quill out and start mulling over "why?".

Bullsh1t can endure for a long time (ask anyone who has lived under communism) but it comes to an end eventually.

One day things have to make sense, whether we like it or not.

 

[counter_violent]

anyway back on topic

could there be a resurgence of fascism due to the currentl climate?

Yes...depending on how many countries go the way of Greece.

 

[Atilla]

Yes...depending on how many countries go the way of Greece.

I read somewhere that California has the world's 8th largest economy.

and they are in a bit of a pickle - http://www.slate.com/id/2246915