The central bank has nothing to do with it.
That would be wrong.
As I said 6 months ago, your housing market is in the gutter for the rest of the decade, and about a month ago, dozens of market analysts and economists finally agreed with me.
From: 10-01-2011, 12:04 PM
Fannie Mae Seeks $5.1 Billion More From Taxpayers
Not even close. It will get worse.
Okay, but you can learn from history.
Your Dollars will not become worthless. And you want to replace the central bank with what, exactly? The same Congress that spent all of your Social Security Trust Fund and who buried you in debt?
Oh, that's brilliant. The central bank does exactly what every central bank in the world does, mostly fix your mistakes.
You most certainly can deny it, especially if you live in reality and are not tripping on Orange Barrel.
Fair enough. There is mobility, but it has become very difficult of late. That has nothing to do with anything other than the world is changing (for the better).
Impressive.
No, two incomes are not necessary. It only appears that they are necessary, in order to live your illusory life-style. You live in a disposable society, even though it isn't necessary. Most of your wealth you squander and fritter away on disposable items that are totally unnecessary.
If you're going to spend $5.95 buying Cholorx Brand Orange-scented Kitchen Wipes With Aloe and Anti-Bacterial Agent every week, then you're throwing away money, because you could buy 3 cloths for $0.99 and use them for several years.
That is a mere one example out of more than 100 examples I could give where you literally throw away your money.
And then you have the unmitigated gall to whine and cry that you have no money. You have more than enough money, you just don't know how to use it to your advantage.
I rarely do stocks, but I told someone to buy Chiquita when it was $0.03/share.
It closed yesterday at $8.91/share.
Just think, if you bought $1,000 worth of shares you'd have $297,000 right now.
Uh, no.
An increase would be like 1,400 sq ft to 1,700 sq ft.
We're talking about McMansions that have nearly doubled and tripled in size. 15 years ago my father bought a brand new home and it's 2,400 sq ft. The McMansions in the next subdivision over are 4,100 sq ft. That's really outrageous. What a waste of resources.
1974 I believe was the year that 51% of households had two cars. The "two car family" was a big deal, almost as big a deal as having your own private phone line instead of sharing a party-line.
4-5 cars is "normal" now, but is it necessary? No, absolutely not. I ride the bus through McMansionville and there's a family of 3 with 5 cars. And the kid isn't even 16 yet. His and her SUVs and his and her sports cars and then the "family car."
You're wrong, and without the Federal Reserve, you wouldn't be on the internet. You wouldn't have cell-phones either.
You can't have credit cards or credit and the gold standard.
The reason you have credit cards and you can buy a home with 0%-20% down and buy a car with nothing down and pay for it for 72 months is because you have fractional reserve banking. On the gold standard, your money supply can grow if and only if the value of gold rises or you acquire more gold.
Very little credit, and what credit exists comes with an exorbitantly high interest rate.
That is the precisely the case.
That is correct.
What were once luxuries are now "necessary vices" so cry the Jones'.
Not really. People weren't buying homes and then being foreclosed 6 months later. People were buying homes, and then after 5-10 years they were using the equity to get "credit card debt consolidation" loans, ie a 2nd Mortgage and some even a 3rd Mortgage.
A default on the 3rd Mortgage is the same as defaulting on the 1st Mortgage.
Not necessarily. Even when the Prime Rate was 13% back in the late 1970s and early 1980s, banks were still offering mortgages in the 4% to 6% range.
That is absolutely right.
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