Comments on: It Ain’t Over ‘Til It’s Over — But So Far This Hasn’t Been As Bad As the Early ’80’s http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/ Real Estate Investing through Purposeful Planning Thu, 20 Nov 2008 09:41:26 +0000 http://wordpress.org/?v=2.0.11 by: BawldGuy http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6500 Thu, 21 Feb 2008 03:24:07 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6500 Tim -- your points are all well made. Still, tainted formulas or not, the financial markets remain the real barometer of both inflation and (horror) deflation. I refuse to imagine how terrible this correction would be with the '80's interests rates were today's. Wow. I like your comment Tim -- keep coming here. Tim — your points are all well made. Still, tainted formulas or not, the financial markets remain the real barometer of both inflation and (horror) deflation.

I refuse to imagine how terrible this correction would be with the ’80’s interests rates were today’s. Wow.

I like your comment Tim — keep coming here.

]]> by: Tim http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6490 Wed, 20 Feb 2008 22:50:53 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6490 Hi, I agree with your basic premise - that things have been much worse from an interest rate perspective. Yet there are several large macro-economic differences that are often left unsaid that impact the affordability of property - and the health of our economy. 1) Middle-class wages are drastically lower in constant dollars. 2) Price of housing (rents or buying) are significantly higher as a % of income. 3) Inflation then was calculated differently than it is today - today's inflation rates are grossly underreported. 4) Our low interest rates are financed largely by middle-east countries and the Chinese. This is not sustainable forever. At today's rent/property cost ratios, consider how difficult it would be to buy income property if rates were as high as they were in the early 80s? (OK, this comment is way off topic, but I was compelled to comment. I enjoy the blog.) Hi, I agree with your basic premise - that things have been much worse from an interest rate perspective. Yet there are several large macro-economic differences that are often left unsaid that impact the affordability of property - and the health of our economy.

1) Middle-class wages are drastically lower in constant dollars.

2) Price of housing (rents or buying) are significantly higher as a % of income.

3) Inflation then was calculated differently than it is today - today’s inflation rates are grossly underreported.

4) Our low interest rates are financed largely by middle-east countries and the Chinese. This is not sustainable forever.

At today’s rent/property cost ratios, consider how difficult it would be to buy income property if rates were as high as they were in the early 80s?

(OK, this comment is way off topic, but I was compelled to comment. I enjoy the blog.)

]]> by: BawldGuy http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6423 Tue, 19 Feb 2008 02:56:03 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6423 Dru -- Correctamundo! Don't be a stranger, and tell my buddy Russell I said hi. :) Dru — Correctamundo!

Don’t be a stranger, and tell my buddy Russell I said hi. :)

]]> by: Dru Bloomfield http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6422 Tue, 19 Feb 2008 01:38:50 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6422 Buffet Buffet

]]> by: BawldGuy http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6359 Sun, 17 Feb 2008 06:10:36 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6359 Benjamin F -- Nope, but a pretty solid guess. Hint: This person is older than Trump. Benjamin F — Nope, but a pretty solid guess.

Hint: This person is older than Trump.

]]> by: Benjamin Ficker http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6357 Sun, 17 Feb 2008 05:32:56 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6357 Trump? Trump?

]]> by: BawldGuy http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6352 Sun, 17 Feb 2008 04:20:48 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6352 Benjamin -- Since Brian was in high school at the time, the answer would be no. But I'm sure he'll be flattered, as that wasn't a bad guess. Benjamin — Since Brian was in high school at the time, the answer would be no. But I’m sure he’ll be flattered, as that wasn’t a bad guess.

]]> by: Benjamin Bach http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6351 Sun, 17 Feb 2008 04:17:06 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6351 Brady Brady

]]> by: It Ain’t Over ‘Til It’s Over | The Long List of Odysseus Medal Nominees | Realtors and real estate, mortgages, lending, investments http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6348 Sun, 17 Feb 2008 03:57:03 +0000 http://www.bawldguy.com/it-aint-over-til-its-over-but-so-far-this-hasnt-been-as-bad-as-the-early-80s/#comment-6348 [...] It Ain’t Over ‘Til It’s Over [...] […] It Ain’t Over ‘Til It’s Over […]

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