tag:blogger.com,1999:blog-5936637281134795592.post227844212163823781..comments2024-03-08T08:55:52.985-08:00Comments on Whispers from the Edge of the Rainforest: Will the economy hit a sudden wall? And Flip and Dip, baby! Flip and Dip.Unknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5936637281134795592.post-23436829867943459812010-10-12T15:21:44.765-07:002010-10-12T15:21:44.765-07:00Furthermore, the recent new paint color is hideous...Furthermore, the recent new paint color is hideous. Should have gone for a slate grey over the salmon.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-84200135645525298232010-10-12T15:20:05.148-07:002010-10-12T15:20:05.148-07:00This house hasn't sold because it has leaky wi...This house hasn't sold because it has leaky windows and poly b piping (including the radiant). It is a 'lovely' house though.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-14545670212579042812010-09-23T05:00:14.761-07:002010-09-23T05:00:14.761-07:00I fully get all of that. So tell me again where t...I fully get all of that. So tell me again where this loss of faith will come from in the near term because so far you've perfectly illustrated deflationary forces at work, then conclude that we're near hyperinflation. I'm not seeing where you made that jump. <br /><br />Like I've said before, you and I agree fully on the end result here, but the US will not be the first domino to fall. If there will be a sovereign default it will be out of Europe first. Where do you think the accompanying capital flight out of Europe will find a new home? Yup....US dollar. I agree it's erroneous thinking, but you know it will take some time for people to reverse their thinking of the USD as the safe reserve currency. <br /><br />You will be right about hyperinflation, but not for several years in the US and not for at least half a decade here in Canada. At least!<br /><br />This is Ben from financialinsight.wordpress.com<br />by the way. Keep up the great work re: our real estate bubble here in Canada.<br /><br />CheersAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-32404020770643374852010-09-22T20:49:18.308-07:002010-09-22T20:49:18.308-07:00Hyperinflation is a distinctly different phenomeno...Hyperinflation is a distinctly different phenomenon from either of deflation or inflation.<br /><br />Most people think hyperinflation is an extension or amplification of inflation. <br /><br />It isn't.<br /><br />Inflation and hyperinflation are two very distinct animals. They look the same because in both cases, the currency loses its purchasing power, but they are not the same.<br /><br />Inflation is when the economy overheats: It’s when an economy’s consumables (labor and commodities) are so in-demand because of economic growth, coupled with an expansionist credit environment, that the consumables rise in price. This forces all goods and services to rise in price as well, so that producers can keep up with costs. It is essentially a demand-driven phenomena.<br /><br />Hyperinflation is the loss of faith in the currency. <br /><br />Prices rise in a hyperinflationary environment just like in an inflationary environment, but they rise not because people want more money for their labor or for commodities, but because people are trying to get out of the currency. It’s not that they want more money —they want less of the currency. So they will pay anything for a good which is not in the currency they have lost faith in.Whispererhttps://www.blogger.com/profile/03524022285962626228noreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-89738189183372815682010-09-22T20:17:08.672-07:002010-09-22T20:17:08.672-07:00"What this means for consumption is that we a..."What this means for consumption is that we are building to an abrupt collapse of the consumer economy whereby a massive number of consumers will be saying goodbye to credit for a very long time."<br /><br />I completely agree. What I don't understand is how you can look at that and see anything but deflation in the near term (at least several years). How does this jive with the near-term hyperinflation position?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-81665579857765391002010-09-22T13:54:32.844-07:002010-09-22T13:54:32.844-07:00Quite interesting. Regarding the home, the questi...Quite interesting. Regarding the home, the question to ask is, what can it go for? Lower than anyone believes is my position. People really want to believe that there is an intrinsic value near their price..reality is they can chase the market.<br /><br />In the US midwest (the part with relatively strong employment), I saw a home very near me start at $889k brand new, regional developer started to market in 2005. Rode the 'melt' down, bit, by bit..eventually sold for $480k in 2009 still unlived in..so witness that, $400k 'gone' in for years. The seller, should be lucky to get out now. My belief is with a 50-70% collapse in Van by the time it's all said and done. Long term fundamentals matter, and the price to income ratio dictates a supportable reality. Therefore prices, must fall, substantially.CanAmericanhttp://whispersfromtheedgeoftherainforest.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-56385439880272619382010-09-22T11:16:04.520-07:002010-09-22T11:16:04.520-07:00buy now or be forever priced out!
EDMbuy now or be forever priced out!<br /><br />EDMAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5936637281134795592.post-11855821614566707752010-09-22T09:15:03.698-07:002010-09-22T09:15:03.698-07:00Sorry...need to correct myself; sold for $838K in ...Sorry...need to correct myself; sold for $838K in 09/2009. This owner put in a fence and new wood flooring. Still a loss at current list price.<br /><br />RDAnonymousnoreply@blogger.com