Comments on: Financial Versus Real http://alephblog.com/2009/10/02/financial-versus-real/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Thu, 18 Mar 2010 13:31:18 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: David Merkel http://alephblog.com/2009/10/02/financial-versus-real/comment-page-1/#comment-23411 David Merkel Fri, 02 Oct 2009 19:17:45 +0000 http://alephblog.com/?p=2053#comment-23411 Fu -- you're right. When I said "unfortunately" it is for those who are inverted on their mortgages, not those who don't own homes. Fu — you’re right. When I said “unfortunately” it is for those who are inverted on their mortgages, not those who don’t own homes.

]]> By: Fu http://alephblog.com/2009/10/02/financial-versus-real/comment-page-1/#comment-23410 Fu Fri, 02 Oct 2009 19:02:50 +0000 http://alephblog.com/?p=2053#comment-23410 >Unfortunately, the the Fed is not big enough to >do that for most residential housing in America. 1. You mean fortunately, not unfortunately, right? Housing prices are too high compared to income, and it is desirable for the economy as a whole house prices fall. In my city, the median house price is still 10x the median household income. The bubble has only deflated 15% from peak here, and houses are still outrageously priced. With the Fed buying 100% of mortgage backed securities, they have propped up prices a lot. Now that is unfortunate. >Unfortunately, the the Fed is not big enough to
>do that for most residential housing in America.

1. You mean fortunately, not unfortunately, right?
Housing prices are too high compared to income, and it is desirable for the economy as a whole house prices fall.

In my city, the median house price is still 10x the median household income. The bubble has only deflated 15% from peak here, and houses are still outrageously priced.

With the Fed buying 100% of mortgage backed securities, they have propped up prices a lot. Now that is unfortunate.

]]> By: David Merkel http://alephblog.com/2009/10/02/financial-versus-real/comment-page-1/#comment-23409 David Merkel Fri, 02 Oct 2009 18:52:32 +0000 http://alephblog.com/?p=2053#comment-23409 TraderMark, nice to have you visit. Come back again. TraderMark, nice to have you visit. Come back again.

]]> By: TraderMark http://alephblog.com/2009/10/02/financial-versus-real/comment-page-1/#comment-23408 TraderMark Fri, 02 Oct 2009 17:32:31 +0000 http://alephblog.com/?p=2053#comment-23408 good point David. We need a new bubble and liquid assets it is. good point David. We need a new bubble and liquid assets it is.

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