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What's the Ideal Ending to the Housing Bubble?


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2006 Apr 8, 6:52am   24,985 views  196 comments

by SQT15   ➕follow (0)   💰tip   ignore  

You write the script. If you could imagine an ending to the housing bubble that would meet all your expectations, what would it be?

You can be creative or not-- your choice.

Also-- what would happen to salaries in the ideal bubble burst? Would the salaries rise to meet the cost of housing, or would housing crash so hard that it wouldn't matter?

#housing

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174   Peter P   2006 Apr 10, 7:38am  

Why not oysters? You probably don’t like Zuni’s then? On the other hand, how about BBQ’ed oysters with Everett and Jones sauce on them - mmmm

Somehow I do not like the taste, smell, and texture of an oyster. BBQ seafood sounds good! I want mine with mayo.

175   skibum   2006 Apr 10, 7:42am  

nomad, newsfreak,
I read somewhere (the Chronic-le?) about this website:

http://www.fallenfruit.org/

It maps public parks, etc that have fruit trees that people have found with edible fruit. You can just use the map to find free produce. Someone needs to do this for the BA!

176   requiem   2006 Apr 10, 7:42am  

I agree with the "get it over with quickly" sentiment. And while I hope that many of the "honest decent working class people" learn from the experience, I suspect that's too much to hope for. And this is why:

A *huge* proportion of people cannot make *correct and accurate*
generalisations of principles. They have to learn everything as if
it's an unrelated piece of crap, BECAUSE THEY ARE STUPID! PEOPLE ARE
STUPID! -- Thorfinn

Before anyone jumps on me for attacking working class people, let me say that I think the above applies to all classes. I personally take the "specialization is for insects" attitude.

// Just hoping that the damage is mostly contained to the truly deserving.

177   skibum   2006 Apr 10, 7:43am  

Peter P Says:

BBQ seafood sounds good! I want mine with mayo.

Have you been to Kirala in Berkeley? They have a robata bar, and they have these baby lobster tails grilled with some kind of mayo topping - so good!

178   skibum   2006 Apr 10, 7:47am  

Completely OT,
But did anyone else see this headline on CNN.com and bust a gut?

http://money.cnn.com/2006/04/09/news/economy/oil_gasprices/index.htm

"Bracing for Summer Gas Pains"

Ouch - get out the Beano!

179   HARM   2006 Apr 10, 7:48am  

New thread: Housing Bubble Pre-Flight Checklist

180   Peter P   2006 Apr 10, 7:52am  

Karmic Bubble Correction

I am going to consult my astrologer.

181   Joe Schmoe   2006 Apr 10, 7:54am  

HARM-

Hear, hear.

I am in an exceptionally foul mood today, so I will say something extremely mean-spirited: I don't even feel that sorry for the blue collar homeowners.

Sure, they are financially unsophisticated. Sure, they were getting a lot of bad advice from older friends and relatives ("real estate always goes up," "I couldn't afford to buy my own house," blah, blah, blah.)

They don't know who Ben Bernake is, what the LIBOR rate is, or whether their ARM will adjust.

But each and every one of them knows that $600,000 is A LOT OF MONEY. More than they can afford. And when someone offers to lend them that much, they all know that something smells fishy. But they are holding their noses and signing on the dotted line anyway.

They also know that debt=bad.

Everyone has heard of the concept of a 20% down payment. And ain't none of them putting down no 20%.

Interestingly, the people I feel a little bit sorry for are the 20-somethings and the FOB immigrants. These people have very little experience with the US economy. Heck, you tell a kid in his early 20's that he can afford a $450,000 condo, and he'll probably believe you. Same goes for the FOB immigrants.

But your average Joe Sixpack buying a $400k tract home in Ontario, and then "cashing out" some equity to get a new Tahoe and a flat screen TV -- these people are just stupid.

I hope they all suffer.

182   Peter P   2006 Apr 10, 7:57am  

I hope they all suffer.

Why hurt your karma by wishing harm on other people? What needs to happen will happen.

183   HARM   2006 Apr 10, 8:08am  

I do, however, avoid hydrogenated fats and high fructose corn syrup and I’ve never smoked. But you’ll have to pry that butter out of my cold, dead hands.

@SFWoman,
You are absolutely 100% dead-on correct. If everyone followed this tiny piece of advice, there would be no obesity/diabetes epidemic here.

184   Peter P   2006 Apr 10, 8:10am  

But you’ll have to pry that butter out of my cold, dead hands.

I like flavored (e.g. herb, anchovy) butter.

High fructose corn syrup? It is something we should uninvent.

185   HARM   2006 Apr 10, 8:17am  

@newsfreak,

"Karmic Bubble Correction" has been added to the Housing Bubble Glossary

186   Peter P   2006 Apr 10, 9:24am  

It’s nasty and should be avoided.

Although I love food, I do not drink sofa or consume much processed food. Perhaps this is why I am still under 200. :)

187   HARM   2006 Apr 10, 9:58am  

Skibum,
Thanks for the "Fallen Fruit" link. Given the price of fresh avocadoes & lemons, I may be going "shopping" this weekend.

188   astrid   2006 Apr 10, 10:41am  

HARM,

I think you live pretty close to the Claremont Colleges. I highly recommend the fruits there, particularly Pitzer's citrus grove. Pitzer's experimental garden is also open to public grazers, the kumquats are very good.

Afterwards, you can pick a bouquet of flowers for your wife. Scripps has a beautiful patch of birds of paradise as well as a rose garden. They should both be in full bloom right now. There's a free picking policy in effect.

189   HARM   2006 Apr 10, 10:52am  

Astrid,

Thanks for the info. I actually went to one of the Claremont Colleges as an undergrad (won't say which one --can't give too much away ;-) ), so I know exactly what you're talking about.

190   astrid   2006 Apr 10, 10:57am  

HARM,

I would tell you an even better source of free food, but that would totally give away my identity. :P

191   frank649   2006 Apr 10, 1:13pm  

Randy,

From Merriam-Webster Online

inflation (noun): an increase in the volume of money and credit relative to available goods and services resulting in a continuing rise in the general price level .

From Webster Online

inflation (noun): A general and progressive increase in prices.

If dictionaries can't agree on a definition of inflation, I can't expect we will. The first definition is the classical definition of inflation and simply means that the money supply is growing. This is what many people refer to as "monetary inflation" to distinguish it from "price inflation". Let's not dwindle on the definition of "inflation" and instead refer to "monetary inflation" and "price inflation" to describe these two obviously different phenomenon.

Once we're past the semantics, there are some unanswered questions I posed to you that I’d like to get back to.

192   Zephyr   2006 Apr 10, 1:47pm  

All inflation is monetary.

193   Peter P   2006 Apr 10, 4:04pm  

I would tell you an even better source of free food, but that would totally give away my identity.

Join Google, another source of free-food. Wait, I mean you will not need free food. :)

194   astrid   2006 Apr 10, 4:06pm  

Well, I'll put it in terms HARM might understand. :) I made a mean cheese tray when I was in college.

195   Randy H   2006 Apr 10, 4:26pm  

Zephyr,

That was my stance, but frank has pointed out (correctly) that this is semantic in our debate (on fiat money), so we can move past it. You and I obviously subscribe to neoclassical economic theory, at least insofar as the quantity theory of money.

Frank,

We can continue the fiat money debate if you wish, or we can pick it up when a more econ-focused thread comes up sometime soon. If none are posted by other authors I'll probably start one myself within a week.

196   frank649   2006 Apr 11, 10:17am  

"I’ll probably start one myself within a week."

Cool. thx.

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