It’s not natural inflation. The Fed has been talking about this for over a year. Where have you been? It’s called market manipulation in the real world and has been ongoing for a while now.
The economy isn’t the problem. It’s doing better. Shock, surprise. The FED is the cause of the issue. Maybe if they weren’t constantly trying to manipulate the value of our money, we wouldn’t have these worries.
Oh my, and the hits just keep coming. It seems there is a lot of variability from one metro area to the next, but on average home prices are now higher than they were at the height of the real estate bubble.
In fact, while it may mean “bigger homes are selling,” (different than “average homes selling for more,”) the average home sale price today is 6.7% higher than at the height.
[quote=“lulubee, post:35, topic:336”] …my friend who owns a mergers and acquisition firm, and is also an economist, plus teaches a course at Harvard Business School. She told me everyone in the business (including her) have pulled out of the market and are in all cash because in the next 18-24 months there will be a huge crash (bigger than 2008.) It has to do with the huge gap between the S&P and what’s been bought on margin. Gap is many times bigger than it was in 1929, 2001 and 2008
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I had asked her what we should do with all the extra cash we have now since we are no longer paying college tuition.
For now I’m sitting on it, but I haven’t sold anything in my investment accounts.
As for housing - it’s gone crazy where I live. Houses selling as soon as the go on the market and for way over asking. I’ve been here 28 years and I’ve never seen a market like this in upstate NY.
I had asked her what we should do with all the extra cash we have now since we are no longer paying college tuition.
For now I’m sitting on it, but I haven’t sold anything in my investment accounts.
As for housing - it’s gone crazy where I live. Houses selling as soon as the go on the market and for way over asking. I’ve been here 28 years and I’ve never seen a market like this in upstate NY.
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I has at an HBS reunion in May, 2007 listening to a presentation by one of the investment management professors. among other things, he said this: 1) all the institutional real estate people he was talking with were terrified; 2) the only investment that nobody wants is cash.