patrick.net

Meanwhile at a birthday party yesterday everone was saying that RE wasn’t going to go down..not here..they hoped.

Moonvalley...yeah, I suppose everyone feels the same way about their own neighborhood! Nobody wants to lose what they assumed was a sure thing: home price.

I never understood personal bankruptcy; it never really seemed like that great of a deal unless one was in truly dire straits. Could someone explain the basics of how it worked before (mainly what you're still liable for), and how it will change with the new rules? I only know corporate bankruptcy law, which apparently is entirely a whole different ball game.

Interesting article in the Boston Globe: "A stay-at-home mom tries her hand at 'flipping' real estate"
http://tinyurl.com/7dxpt

And take a look at housing stocks today:
http://tinyurl.com/bl5rm

I think the only excuse for bankruptcy is a health related issue…Can anyone think of anything else?…

How about lawsuits that are possibly wrongful?

FNM is down again. :-D

New thread: Immigrants and housing prices

Thanks vee!

HZ,
Good riddle. The debit-side of the new money creation is the "inflation-tax", which fuels the seigniorage the gov't receives by printing new money. This assumes that you accept the Quantity Theory of Money which indicates that growth of money stock results in inflation (holding velocity and output even).

Money is permanent as soon as it's printed because of this identity. I guess the real riddle is what happens to seigniorage during deflation? What if the Fed were printing money but there was negative inflation?

On the Merc headlines today:

LOAN LANDSLIDE ON SHAKY SOIL

It is going to be a shock for many.

What % of the money supply is counterfeit?

I don't know how much is counterfiet, it would be interesting to see. I do know that there was a tracking study sometime in the 90s that showed that $20 bills tend to be the most "active", moving with the highest velocity through the economy. More interestingly, some whopping percentage (I recall 85%+) end up either in South Flordia or South California after less than 12 weeks in circulation. This was supported by surveying banks to find out how much currency they were moving out of these banks and redistributing North. I leave it to the reader to figure out why all the cash heads south and to the coasts.