European Tribune - Comments - World economy: major bear suddenly turning optimistic

World economy: major bear suddenly turning optimistic | 50 comments (50 topical, 0 editorial, 0 hidden)

Re: World economy: major bear suddenly turning opt (none / 0)

Well, of course you're not wrong in principle.

But, I would guess that the cooking involves some sleight of hand about the amount of after-tax income spent on housing. That presumably is the key assumption.

by Metatone (metatone [a|t] gmail (dot) com) on Wed May 3rd, 2006 at 08:49:20 AM EST
[ Parent ]

Re: World economy: major bear suddenly turning opt (none / 0)

There is something definitely not right about assuming that people spend 1/3 of their income on housing and that 1/3 fraction remains constant... Unless people are also downsizing their living quarters to keep their housing expenses within bounds, which is a definite possibility.

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper

by Migeru (migeru at eurotrib dot com) on Wed May 3rd, 2006 at 08:52:59 AM EST
[ Parent ]

Re: World economy: major bear suddenly turning opt (none / 0)

Ah, but surely the downsizing only works properly in the rental sector (and even then there are contract restrictions.) If you are paying back a mortgage, your flexiblity to downsize is limited by the ease of selling your house?

by Metatone (metatone [a|t] gmail (dot) com) on Wed May 3rd, 2006 at 09:13:00 AM EST
[ Parent ]

Re: World economy: major bear suddenly turning opt (none / 0)

Your mortgage payments are fixed and not affected by inflation (again, to a first approximation).

guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper

by Migeru (migeru at eurotrib dot com) on Wed May 3rd, 2006 at 09:46:48 AM EST
[ Parent ]

World economy: major bear suddenly turning optimistic | 50 comments (50 topical, 0 editorial, 0 hidden)

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