Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
posting it there.

Great diary. Depressing reaction over there.

The good news - my house in on the market officially now. Man am I sore from all the painting, re-wiring and staging I have had to do...

Word to the wise out there in the US - if you are thinking of buying a home, now is the time. A year from now, perhaps earlier, those interest rates you see today? It'll be decades before you see them again. If you think you can get financing (tougher today, but not impossible if you've good credit and income) and you know you're going to be staying put in your area for a minimum of seven years, do it NOW.

Because if you think that home you want to buy will be worth 30% less a year from now than it does now, all you have to do is run that mortgage payment on the 30% discounted house with a 12% interest rate to see you still will be paying significantly more.

And those interest rates will be going there. There are limits to how much a central bank can print money. Even the US fed.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Mon Mar 17th, 2008 at 12:20:25 PM EST
The two go hand-in-hand.  As the rates rise, it'll push the prices down more.  We're going to be looking at 50% drops in my area.

Fortunately, I have no intention of staying here any longer than I have to, and the only areas I'd like to buy in here are beyond the means of all but the highest-ranking government employees (with two incomes).  Living in the DC area has certainly given me an appreciation for the purchasing power of the other cities I've lived in and spent time in.  Christ, my apartment in Tallahassee was twice as nice (and better built), twice the size, and went for half the rent of what I've got now.  Buying a house there would cost me about one-third of what it would cost here.  Ditto ATL, except that the houses would cost about half what they cost here.  Even South Florida looks dirt-cheap now.

Honestly, I'd rather rent than fork over $300k for some dumpy condo in a God-awful neighborhood.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Mon Mar 17th, 2008 at 12:38:11 PM EST
[ Parent ]
Indeed they do go hand in hand.

People don't get this enough. A home owned is like a long bond owned. The price is simply an expression of the yield, with the yield being notated, primarily, by the 30-year fixed rates.

A lot of people are going to be thinking a lot differently of their financial situation two years from now.

And if you are not going to be able to sit tight for the next 7 years at least, and possible more, there's no reason to buy.

But if you must buy, please consider buying my home. It really is a nice home.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Mon Mar 17th, 2008 at 12:44:24 PM EST
[ Parent ]
if i may ask?

There were quite a few comments critical of Clinton's participation in the deregulatory process that led us here.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Mar 17th, 2008 at 12:47:17 PM EST
[ Parent ]
I guess you're a glass one-quarter full person, and I'm a glass three-quarters empty person.

Those who made the comments were often roundly criticized, the thread didn't hesitate to start in on another round of political correctness fever based on a few throwaway (and well deserved) insults of Greenspan and his stenographer wife, and I couldn't help but note the comment thread on bonddad's quite mistaken and retrograde ditty on the same subject.

Not to mention, go look up what Schumer has to say about this - leading Democrats haven't been silent, they've been supportive of Bernanke's complicity in grand larceny. And note the absence of any running commentary on the part of front pagers there, not that any of them would be credible.

I am depressed, and angry too.

Wish me luck on the sale of my house before the sit hits the fans. And...I think we need a new series - $2.00 Euro.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Mon Mar 17th, 2008 at 12:54:06 PM EST
[ Parent ]
And...I think we need a new series - $2.00 Euro.

Series?  That would be a one-off, I think....

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Mar 17th, 2008 at 01:50:20 PM EST
[ Parent ]
Naw, it's going to take more than a couple of weeks. Maybe six months?

As soon as the President McCain is sworn in, Helicopter Ben will be given a golden parachute (personally I think he deserves a golden shower...) into a plum private sector job where he can go back to be with his family more and where he will get his own back scratched after scratching those of half of Wall Street the past year or two.

Perhaps there will be a quick interim period with a chairman who lasts less than a year, like there was between Burns and Volcker; perhaps the Federal Reserve will actually be completely re-organized as it will have been the third US Central Bank to go under. Perhaps Paul Volcker himself will come back to do the same thing hed did almost thirty years ago, which is what the situation will demand.

And if he does, then the dollar will come back. But Americans, in particular those who are not wealthy, aren't going to like what things look like in this case.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Mon Mar 17th, 2008 at 06:24:10 PM EST
[ Parent ]
would not surprise me at all - it is indeed likely to be the best thing to do at some point in the foreseeable future.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Tue Mar 18th, 2008 at 05:56:18 AM EST
[ Parent ]
That'd be hilarious! What a huge indictment of Greenspan. And Volcker is just 9 years older than McCain. ;)

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Tue Mar 18th, 2008 at 08:41:04 AM EST
[ Parent ]
Those were normally an excuse to attack Hillary for Obama's benefit.

It'd be nice if the battle were only against the right wingers, not half of the left on top of that — François in Paris
by Carrie (migeru at eurotrib dot com) on Mon Mar 17th, 2008 at 01:46:53 PM EST
[ Parent ]


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