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Will ODL cause an increase in price? Some thoughts..


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33 minutes ago, Xill said:

Yes, I want to live in a house, but now i have to take a loan for 30 years when in the past i could buy a house from the wedding money. huge inflation, wonder why..

If i want to start a business I will work hard and earn my money, I wont take a loan for a business that might fail

You could never really buy a house with "wedding money". You are lucky if the wedding money and gifts cover the cost of the wedding. This has been true for a long time. The inflation on housing outside of a few major cities isn't really that bad. House prices in most places have perhaps doubled in the last 30 years and is fairly on par with salary. In fact, real purchasing power of Americans has stayed pretty much even since 1950:

https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

You basically lack any knowledge or have any statistics to back up your assertions, as expected.

Most large businesses currently and always have relied on investors and/or some loans, that hasn't changed. If you plan to run anything larger than a lemonade stand, loans and outside investors are a good idea.

What you shown Xill, is a true lack of real knowledge, backed by any substantial studies and a heavy reliance on Youtube research centered on buzzwords.

Edited by Archbob
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Only 9 more days until our next cold bath. Long way to go. Dozens upon dozens of innuendos, not dozens of banks. Household names. This is a horror movie and Xill is just a bystander. At least he has enthusiasm. X-crickets around here compared to the glory days. Beegee should stop tweeting.

Edited by 1776isHere
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24 minutes ago, richxrp said:

I guess you've never seen this infographic ?

cost-of-living.png.80c6214ebad3e01d057d21c0c3b64c0c.png

Yes, the average income has grown immensely since 1939 as has everything else.  Things like Milk and Bacon and actually cheaper relative to income now than in 1939.

Edited by Archbob
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3 minutes ago, Archbob said:

Yes, the average income has ground immensely

So true.  My average income continually gets ground down under the weight of climbing bills.   :) 

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12 minutes ago, Archbob said:

Yes, the average income has grown immensely since 1939 as has everything else.  Things like Milk and Bacon and actually cheaper relative to income now than in 1939.

You might be one of the lucky ones whose average income may have kept pace  (maybe your'e a big data scientist or in AI ?.. ) .. but mine and a whole lot of my peers have definitely not.

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Anyone who’s wishing for banks to die and for wealth to be redistributed will be waiting a long time, even beyond their lifetimes . No matter what the system is, wealth always finds its way to the same bunch. If you’re patient enough, smart enough, you’ll find an opportunity to better your own life. But let go of Utopian dreams. They aren’t happening

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1 hour ago, richxrp said:

You might be one of the lucky ones whose average income may have kept pace  (maybe your'e a big data scientist or in AI ?.. ) .. but mine and a whole lot of my peers have definitely not.

The average income in 1939 as listed was $1,731. You get 10x that working at McDonalds per year nowdays.

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3 hours ago, Xill said:

Days will tell if im right, fed balance sheet qe's, low rates (already negative in germany and Japan) and gold price support what im saying.. dyor

No grasp on reality, yea go on talking about reality when i give you facts and you laugh. DENIAL

 

 

Amazing post-to reaction ratio with this one. I wonder why? Oh yes, IGNORE

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50 minutes ago, Archbob said:

The average income in 1939 as listed was $1,731. You get 10x that working at McDonalds per year nowdays.

It's all relative.  10x a house would be $39,000. 10x rent would be $270 per month.  You can't get these prices for those goods and services in current time. There are some people who make 100x the salary now compared to back then and they are doing ok.. but for those people who are trying to get by , they can't hope to survive in this environment.

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3 minutes ago, richxrp said:

It's all relative.  10x a house would be $39,000. 10x rent would be $270 per month.  You can't get these prices for those goods and services in current time. There are some people who make 100x the salary now compared to back then and they are doing ok.. but for those people who are trying to get by , they can't hope to survive in this environment.

Well, working at McDonalds isn't the average salary for a family. the average salary is around 30-35x what it was in 1939.

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7 hours ago, Archbob said:

You could never really buy a house with "wedding money". You are lucky if the wedding money and gifts cover the cost of the wedding. This has been true for a long time. The inflation on housing outside of a few major cities isn't really that bad. House prices in most places have perhaps doubled in the last 30 years and is fairly on par with salary. In fact, real purchasing power of Americans has stayed pretty much even since 1950:

https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/

You got anything to back up that assertion that house prices have tracked wages?

In the west (USA, Canada, Europe, Australia and NZ), house prices have galloped away from wages for decades.

USA: https://www.longtermtrends.net/home-price-median-annual-income-ratio/

Australia: https://www.businessinsider.com.au/chart-australian-wages-house-prices-2018-3

Canada: https://saskatoonresidential.com/buying-a-house-on-your-own/

UK (as a chart) :-

UKhouseprices&wages.jpg

The first link I provide completely debunks your throwaway remark that wages in the US have tracked house prices.  NOPE.  House prices have become more and more multiples of a typical yearly salary in the US.  IF you were right, then the federal funds rate could easily be normalised to 5%+ and the housing market wouldn't blink.  Do me a favour...the housing market would be obliterated if the US ever normalised rates again - and that just shows that house prices have gone up way faster than wage inflation. 

YOUR link you provide merely states that wages have tracked dollar inflation.  Nothing more, nothing less than that. 

 

Edited by 2ndtimearound
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