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Kenmore, WA
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Ignore grendel
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In United States
Registered Mar 09, 2011

grendel's most recent comments:

• On 6 Feb 2013 in David Stockman deems U.S. in a housing bubble, grendel said:

  I think this is sloppy semantics. You have a bubble when speculation leads to high prices detached from fundamentals which leads to a massive increase in supply.

  If anything, supply is still contracting. New housing starts are still in the gutter. REO houses are still rotting on the sidelines. It's not a bubble.

  Prices have gone up in 2012, but I think it was more that prices went WAY down in 2011 and the fed panicked enough that it held us to a stable level. Not that there's anything actually positive about 2012.

  Does this mean that we've finally "hit bottom"? No. Once the pricing supports by the Fed are removed, prices will continue to fall. But is this a bubble? Not even close.

• On 13 Dec 2012 in If we're in a housing recovery WHY is Ink Jet Ben at it again ?, grendel said:

  Bernake fears deflation more than inflation. Pumping cash into the economy during ZIRP is a defensive maneuver to prevent deflation. Since effective bond interest rates are still approximately zero even with the repeated huge cash injections, there is some evidence that the interest rate without the cash injections would be lower (i.e. deflation).

  In which case, he's doing his job to prevent us from following Japan into the deflationary trap.

  He may be creating other hazards with these policies, but the devaluation of the dollar does not seem to be a risk right now.

• On 13 Dec 2012 in Our House Buying Experience, grendel said:

  "Rent or leave the area."

  "I don't see why I should leave."

  He didn't say that.

  If you can't afford to buy, you should rent a place that fits your lifestyle.
  If you can't afford to rent a place that fits your lifestyle then you can't afford to live there.
  If you can't afford to live there, but you choose to live there anyway, then you can:

  1) put yourself on a payment plan to near-guaranteed financial disaster
  or
  2) go live someplace else.

  Those are the two choices you have. Sounds like you're really interested in the "near guaranteed financial disaster" option.