You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
California has just stopped paying its bills
- Thread starter peilthetraveler
- Start date
Think we can just give Cali to the Chinese and call it even?
The crux of the offshoring issue to me is that the middle class is caught between a rock and a hard place:
Wages are being arbed with lower cost of living countries, but the government (due to the financial sector) is determined to prevent housing costs from falling. Well, if real wages are dropping, then HOUSING COSTS need to fall too. The real purchasing power is just not there. Government has tried to make up the difference with mountains of "stimulus" and cheep credit, yet that only kicks the can down the road and creates bubbles. Every area of our economy save the financial sector and over-extended homeowners NEEDS housing costs to fall, which is exactly what people are afraid of.
The financial sector, now that it is divorced from real values (based on fictional credit reserves/fiat) has become a parasite feasting on the real economy for the benefit of those who understand how to play the game, which of course includes the state.
Wages are being arbed with lower cost of living countries, but the government (due to the financial sector) is determined to prevent housing costs from falling. Well, if real wages are dropping, then HOUSING COSTS need to fall too. The real purchasing power is just not there. Government has tried to make up the difference with mountains of "stimulus" and cheep credit, yet that only kicks the can down the road and creates bubbles. Every area of our economy save the financial sector and over-extended homeowners NEEDS housing costs to fall, which is exactly what people are afraid of.
The financial sector, now that it is divorced from real values (based on fictional credit reserves/fiat) has become a parasite feasting on the real economy for the benefit of those who understand how to play the game, which of course includes the state.
very well stated.
that is part of the long run good news.
the good news is we have all that infrastructure in place.
It just needs to be priced at 3 to 4 times the buying pools salary instead of 7 to 10 times.
If we can get govt out of the housing market we could more easily adjust to wage competition.
that is part of the long run good news.
the good news is we have all that infrastructure in place.
It just needs to be priced at 3 to 4 times the buying pools salary instead of 7 to 10 times.
If we can get govt out of the housing market we could more easily adjust to wage competition.
Quote from jem:
very well stated.
that is part of the long run good news.
the good news is we have all that infrastructure in place.
It just needs to be priced at 3 to 4 times the buying pools salary instead of 7 to 10 times.
If we can get govt out of the housing market we could more easily adjust to wage competition.
I agree with you.
Costs of real estate has to be inline w/ purchasing power, 3 to 4 times.
But I think the biggest correction are stocks. P/E ratios are even more out of control
Quote from 1prometheus:
The crux of the offshoring issue to me is that the middle class is caught between a rock and a hard place:
Wages are being arbed with lower cost of living countries, but the government (due to the financial sector) is determined to prevent housing costs from falling. Well, if real wages are dropping, then HOUSING COSTS need to fall too. The real purchasing power is just not there. Government has tried to make up the difference with mountains of "stimulus" and cheep credit, yet that only kicks the can down the road and creates bubbles. Every area of our economy save the financial sector and over-extended homeowners NEEDS housing costs to fall, which is exactly what people are afraid of.
The financial sector, now that it is divorced from real values (based on fictional credit reserves/fiat) has become a parasite feasting on the real economy for the benefit of those who understand how to play the game, which of course includes the state.
Governments, all of them together, spend half the gross national product every year... that is why wives have to work, it's to pay the tax bill that is priced into everything... watching these assclowns with their stimuluses and everything is hardly amusing but it's all we've got!!
Quote from 1prometheus:
The crux of the offshoring issue to me is that the middle class is caught between a rock and a hard place:
Wages are being arbed with lower cost of living countries, but the government (due to the financial sector) is determined to prevent housing costs from falling. Well, if real wages are dropping, then HOUSING COSTS need to fall too. The real purchasing power is just not there. Government has tried to make up the difference with mountains of "stimulus" and cheep credit, yet that only kicks the can down the road and creates bubbles. Every area of our economy save the financial sector and over-extended homeowners NEEDS housing costs to fall, which is exactly what people are afraid of.
The financial sector, now that it is divorced from real values (based on fictional credit reserves/fiat) has become a parasite feasting on the real economy for the benefit of those who understand how to play the game, which of course includes the state.
+1 what u r saying is 100% true.. since we have to compete with offshore wages. we might as well drop our prices here. DEFLATION has to rule here. the middle class purchasing POWER is going to DECLINE from here on.
funny thing is. folks who have jobs , dont realize how fragile a position they are in.
. in USA. if u have a job. life is GREAT. but once u get unemployed . u r in DEEP SHIT.. in this current ECONOMY..