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Title | fast cash advance | fast cash advance | |||
Date | 2013-05-16 23:29:22 | 2013-05-21 10:47:39 | |||
Editor | Anonymous | Anonymous | |||
Edit | Edit this version | Edit this version | |||
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2013-05-16 23:29:22 by Anonymous / Edit this version | 2013-05-21 10:47:39 by Anonymous / Edit this version | ||||
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t | 1 | cskkwige <a href="http://paydayloansusacxd.com/ "> | t | 1 | The talk is as negative as it gets but perception |
> | fast cash advance</a> TKydT <a href="http://payday | > | is often much worse than reality. The average per | ||
> | loanscanadacxd.ca/ ">pay day loans</a> BzFiw <a hr | > | son incorrectly believes that inflation is soaring | ||
> | ef="http://paydayloansukcxd.co.uk/ ">payday Advanc | > | at an unusually high rate at the same time that t | ||
> | e uk</a> >:]] | > | he economy is sinking; furthermore, he believes th | ||
> | e worst is yet to come. GDP and inflation are der | ||||
> | ived by multiplying the price of products times th | ||||
> | e price of products but there is more to each of t | ||||
> | hese computations than meets the eye. The GDP is | ||||
> | the great total but it includes other costs necess | ||||
> | ary to purchase the sum of all the goods. The fac | ||||
> | t that the mix of goods purchased changes from mon | ||||
> | th to month makes the computations all the more di | ||||
> | fficult. Even many who accept Milton Friedman's s | ||||
> | tatement that inflation is a monetary phenomenon d | ||||
> | o not understand what inflation is.An accurate inf | ||||
> | lation number is a number that cannot be captured | ||||
> | by averaging costs or by averaging the cost times | ||||
> | the quantity of goods purchased. The cost of brea | ||||
> | d is much different than the nominal price of that | ||||
> | bread. Goods have time and place utility. The f | ||||
> | ellow who drives home from work only to have his w | ||||
> | ife tell him to drive back to the store to buy bre | ||||
> | ad pays a much higher price than does his neighbor | ||||
> | who gets a cell phone call from his wife before h | ||||
> | e passes the store. The third neighbor, a careful | ||||
> | shopper, who has bread enough to last until "shopp | ||||
> | ing day", buys his bread a few days later, again a | ||||
> | t a much lower total price. The next neighbor, wh | ||||
> | o has time on his hands and who values the exercis | ||||
> | e pays, a different price when he rides his bike t | ||||
> | o the store. If he substitutes bike rides for a m | ||||
> | embership at the club, he may even "make money" wh | ||||
> | en he goes for bread.Today, tomorrow and the next | ||||
> | day, there will be billions if not trillions of in | ||||
> | stances, where cell phone calls, emails, Internet | ||||
> | transactions, search inquiries, instant messages o | ||||
> | r other communications, will dramatically reduce t | ||||
> | he total cost of billions if not trillions of tran | ||||
> | sactions. Put another way, in a large number of i | ||||
> | nstances, an extremely low cost electronic event o | ||||
> | r an electronic event in combination with another | ||||
> | action will be substituted for another far more ex | ||||
> | pensive transaction. Even the cost of "Hello, ho | ||||
> | w are you?" has been dramatically reduced. As far | ||||
> | as the housing and loan data go, Professor Perry h | ||||
> | as provided much data to show that the housing pri | ||||
> | ce market is not nearly as bad as the talk. In on | ||||
> | e instance he showed that house prices have risen | ||||
> | in all 22 right to work states. The Shiller-Case | ||||
> | index is weighted heavily by big city locations wh | ||||
> | ich experienced huge run ups in housing prices and | ||||
> | then huge declines. The average home owner is no | ||||
> | t directly affected by the fact that a Las Vegas c | ||||
> | ondo climbed in value from $400,000 in 2000 to $1. | ||||
> | 6 million in 2005. Neither has he been directly a | ||||
> | ffected by the huge fall to $800,000 over the past | ||||
> | 3 years. I made this example but the numbers rep | ||||
> | resent reality without being precise. Condo price | ||||
> | s are more volatile than home prices, second home | ||||
> | locations are more volatile than first home locati | ||||
> | ons and resort locations are even more volatile. | ||||
> | A condo in a resort area or a home in a city with | ||||
> | building restrictions is a very volatile asset. T | ||||
> | he average home in the average community has not b | ||||
> | een nearly so volatile. Furthermore, the data sho | ||||
> | w that plenty of money is available to those who h | ||||
> | ave good credit and money to pay down on a home in | ||||
> | the average community. Any lender worth his salt | ||||
> | will think twice about lending even 80% on an $800 | ||||
> | ,000 condo which was valued at only $400,000 8 yea | ||||
> | rs ago in a market filled with vacant properties. | ||||
> | In other posts, Professor Perry has shown that u | ||||
> | nemployment is low, interest costs are low and the | ||||
> | cost of food and fuel relative to disposable inco | ||||
> | me is still low. He has shown that new home const | ||||
> | ruction has declined while population continues to | ||||
> | grow (particularly in the 22 right to work states | ||||
> | ). He has even shown data and market forecast tha | ||||
> | t suggest the probability of a 2008 recession has | ||||
> | fallen to a low probability. I do not recall if t | ||||
> | he Professor has called a bottom in the housing ma | ||||
> | rket but he has definitely shown that the conditio | ||||
> | ns are ripe for house appreciation. | ||||
2 | |||||
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