1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Is the economy turning around?

Discussion in 'Members' Lounge' started by pissedoffsol, Dec 22, 2004.

  1. pissedoffsol

    pissedoffsol RETIRED

    Messages:
    49,693
    Likes Received:
    54
    Joined:
    Sep 28, 2002
    Location:
    Retirement Home
    just logged into paypal to pull the Meals for the Needy donations to my checking account, and woah and behold, i'm currently earning 2.03% intrest.

    HOLY CRAP.

    2%!!!

    i haven't seen 2% in at least 6 years.

    with higher intrest rates, i can onlyhope that housing prices will settle and then being to fall back to their non-inflated price structre of 3 years ago.

    thoughts?
     
  2. phunky.buddha

    phunky.buddha Admin with a big stick Admin VIP

    Messages:
    28,465
    Likes Received:
    228
    Joined:
    Sep 30, 2002
    Location:
    Dallas / Fort Worth, TX
    Let's hope so.
     
  3. YangpaNemsay

    YangpaNemsay Senior Member

    Messages:
    682
    Likes Received:
    0
    Joined:
    Nov 12, 2002
    Location:
    Okinawa, Japan
  4. spectacle

    spectacle Senior Member

    Messages:
    898
    Likes Received:
    0
    Joined:
    Aug 23, 2003
    Location:
    St. Petersburg, Fl
    NOT UNDER BUSH'S WATCH right pissedoff?

    /sarcasm
     
  5. 94RedSiGal

    94RedSiGal Senior Member

    Messages:
    3,147
    Likes Received:
    1
    Joined:
    Sep 11, 2003
    Location:
    Massachusetts
    I wonder how the Xmas sales figures will end up? There certainly has been a lot of shoppers on the roads this season. I don't get a sense that our economy is improving, more like hitting a plateau. I don't think the war in Iraq stimulated our economy, unlike past conflicts have done. I just feel that our government keeps spending money it doesn't have and a whole bunch of it keeps going into Halliburton's coffers... so my outlook is very pessimistic.

    On a happier note, gas prices are a little bit lower this week. :blink:
     
  6. Seany-izzle

    Seany-izzle New Member

    Messages:
    7,738
    Likes Received:
    8
    Joined:
    Aug 25, 2003
    Location:
    In a fucking house.
    several economists predict that we wont see another recession for a few years, and if you look at economics, we are due for a rise in the economy. the housing market is going to go up too, just like your interest rate did.
     
  7. dveit

    dveit Well-Known Member VIP

    Messages:
    5,361
    Likes Received:
    79
    Joined:
    May 5, 2003
    Location:
    DMV

    :werd:
    Gas prices are certainly going down here. At $1.54 for the past few days, the first time below $1.99 in months.

    :thumbsup:
     
  8. 94RedSiGal

    94RedSiGal Senior Member

    Messages:
    3,147
    Likes Received:
    1
    Joined:
    Sep 11, 2003
    Location:
    Massachusetts

    I've never noticed landlords to lower rents, just raise them. Sometimes the problem is because they bought their properties high and need to keep the rents strong to balance out their expenses. I think that other landlords would rather keep the high even if it means some apartments stay empty.
     
  9. phunky.buddha

    phunky.buddha Admin with a big stick Admin VIP

    Messages:
    28,465
    Likes Received:
    228
    Joined:
    Sep 30, 2002
    Location:
    Dallas / Fort Worth, TX
    Hmm. Lockheed just cut 1000 jobs in Houston.
     
  10. CRX-YEM

    CRX-YEM Super Moderator Moderator VIP

    Messages:
    4,623
    Likes Received:
    54
    Joined:
    Sep 29, 2002
    Location:
    Wallingford, CT


    Try more like 5-6 years ago. House prices have been over-inflated since the tech stocks took off and everyone and their brother over paid and out bid each other to get the house of the dreams.

    Keep in mind if housing prices do decline to their repsective levels, all these people with $400K+ homes with low a interest rate ARM, that earn $20 an hour will be forced to sell their homes at a loss, as they won't be able to afford them anymore, which is good for new home buyers but will really suck for the overall economy.
     
  11. reckedracing

    reckedracing TTIWWOP VIP

    Messages:
    21,057
    Likes Received:
    1,180
    Joined:
    Dec 5, 2002
    Location:
    NY


    thats a negatory... rise in interest rates have an inverse effect on the housing market... as interest rates go down its cheaper to buy things on time, mainly cheaper to have a mortgage... so when interest rates tanked everyone went real estate crazy, the real estate market in this country now averages about 30% overinflated, especially on the coasts... NE in general is horrible...

    i'm with you pissed, been looking for a house for a year and a half, hopefully the RE market crashes, lol
     
  12. CRX-YEM

    CRX-YEM Super Moderator Moderator VIP

    Messages:
    4,623
    Likes Received:
    54
    Joined:
    Sep 29, 2002
    Location:
    Wallingford, CT



    I think what he was trying to say is that as interest rates rise for savings accounts, the interest rates for home loans rise as well, which means you can barrow less as mortgages get more expensive. and vice versa.
     
  13. dohcvtec_accord

    dohcvtec_accord WRX Sellout

    Messages:
    8,433
    Likes Received:
    1
    Joined:
    Sep 29, 2002
    Location:
    The left lane
  14. brc80

    brc80 Senior Member

    Messages:
    1,613
    Likes Received:
    1
    Joined:
    Nov 9, 2002
    Location:
    Southern California
    The problem with the real estate market is people who bought a few years ago at a low price lets say ($200,000) are still making the same if only alittle more then they were at the time they bought. So even thought there house has gone up in value a crazy amount, they cant afford to sell, get there equity and buy a bigger more expensive house because there not making the money to do so. This is what keeps the market high. Low supply of house's. So for the few people who can afford to do something and sell there house, they are getting an insane amount of money for them.


    (By the way this is all based on California)
     
  15. 94RedSiGal

    94RedSiGal Senior Member

    Messages:
    3,147
    Likes Received:
    1
    Joined:
    Sep 11, 2003
    Location:
    Massachusetts
    Another problem with real estate, just like the stock market, is that too many people buy their houses counting on them to appreciate. True, for the last few decades, everyone got happy because selling their old house made them money in a big way. No one of this time period figured on their houses losing value, but they can and do. Other people bought multi family houses and apartments, and made a killing turning them into overpriced condos (well at least they were cheaper to buy that the traditional starter homes). Those smart greedy people used up a lot of cheap older apartment housing in the condo conversion wave. And now in order to get more affordable housing on the market, our government has to either build it or give private investors tax incentives to build them.

    The dark lessons of the first depression in America have been forgotten in both the real estate and the stock markets. Well anyway, that is part of the reason it's foolish to spend too much of your hard earned money on new $25K and up cars and plasma tv sets imo. Think before you spend. I got hooked on my used little Civics in part because they were fun cars to drive and there was no good reason to spend anything more on a vehicle. Except for the Si, the rest of my cars have just been bought outright.

    So when you are young and energetic, you are supposed to bust your ass working and get the worst house in the best neighborhood. You fix that up that house and sell it for a profit. You continue the process as you build equity in yourself. Later on, when you retire, you sell out your expensive nice house and buy a place in a less expensive but nice area...
     
  16. Bl6CRX

    Bl6CRX Senior Member

    Messages:
    1,553
    Likes Received:
    0
    Joined:
    Jul 14, 2003
    Location:
    UCLA
    The answer to all of these discussions about prices of particular goods lies in the principals of economics itself. Summarized simply, prices are largly determined by the supply and demand for these goods. Though I could go into much more detail, being an economics major, you'd all just scroll down cause its a preety dry topic.

    To comment on the housing market; people buy houses for the service that a house provides (a place to live) and/or as an investment. Because of this, demand acts in differently in these situations. Leaving the demand for the service aspect of houses aside, what is relevent here is that as the price of, and therein the return on, these investments increases, more people and attrached to houses for investment purposes and the price of said investment will increase. Now in a perfect market, this price will increase until the return on the investment is equal to the "market" or "economic" (think "standard" to make it easier) rate. Now what has happened here is what economists call a "speculative bubble." What this basically means is that as the prices of real estate rises (similar to the price of a particular stock rising) people will overrate the investment and dump money into it, causing the price to grow rapdily, and thus more investment to grow rapidly, (hence the bubble growing) but then it will "pop" when people realize the true value of these investments and begin to sell. The sell off will occur and prices plummit. Is this possibly the situation here, the market is a bubble and may soon pop? The nation's top economicsts say yes, the Federal Reserve Board of Governerns released as statement saying so. Im interested to see where it does turn out to go.


    :cliffs:
    The housing market is inversly related to interest rate (BUT NOT DETERMINED BY) so an increase in interest rates could lead to a decrease or increase in price. Will prices rise or fall? The nations top economists predict they will plummit as the market is a "speculative bubble"
     
  17. B16

    B16 Super Moderator VIP

    Messages:
    11,539
    Likes Received:
    534
    Joined:
    Sep 30, 2002
    Location:
    yay area, CA
    houses here in CA do NOT depreciate
     
  18. 94RedSiGal

    94RedSiGal Senior Member

    Messages:
    3,147
    Likes Received:
    1
    Joined:
    Sep 11, 2003
    Location:
    Massachusetts

    No, they might burn up in a wildfire, be rocked by an earthquake, collapse in a mudslide or fall into the ocean. :lol:
     
  19. B16

    B16 Super Moderator VIP

    Messages:
    11,539
    Likes Received:
    534
    Joined:
    Sep 30, 2002
    Location:
    yay area, CA
    that is true :)
     
  20. pissedoffsol

    pissedoffsol RETIRED

    Messages:
    49,693
    Likes Received:
    54
    Joined:
    Sep 28, 2002
    Location:
    Retirement Home


    LMMFAO. i was half way through posting this before i even hit the add reply button when i saw your post martine. quick on the draw :p


    it's getting to the point now, where i'm really just considering buying a plot of land somewhere, and living in a camper of some sort while i build my house myself- basically, me being the general contractor. i'll hire a cement guy to poor the foundation... and so on... we'll see.
     
Verification:
Draft saved Draft deleted

Share This Page