AP Interviews "S" on the CGC Action Comics #1 6.0

[CentaurMan]

I think you already know the answer. The government can destroy the value of cash through inflation and is often tempted to do that in order to paper over deficits. While deflation can crush the value of hard assets, there is less temptation for the government to do that when the majority of the voters have significant debt.

 

That may happen...eventually. But fears of this happening in the near-term are misguided. It is wholly inaccurate to believe the government can just create inflation out of thin air at a time when the velocity of money has crashed and credit is imploding - otherwise Japan would have gotten out of their deflation long ago.

 

This is exactly right. While inflation superficially appears to be around the corner due to all the bailout spending and such going on, the current government programs are a drop in the bucket compared to the amount of currency vanishing from the monetary system due to delevering. Maybe in a few years, when the world's balance sheet is substantially smaller, rampant inflation can take hold, but right now the government couldn't cause inflation if it tried (and it'll start trying very soon).

[adamstrange]

I think you already know the answer. The government can destroy the value of cash through inflation and is often tempted to do that in order to paper over deficits. While deflation can crush the value of hard assets, there is less temptation for the government to do that when the majority of the voters have significant debt.

 

That may happen...eventually. But fears of this happening in the near-term are misguided. It is wholly inaccurate to believe the government can just create inflation out of thin air at a time when the velocity of money has crashed and credit is imploding - otherwise Japan would have gotten out of their deflation long ago.

 

This is exactly right. While inflation superficially appears to be around the corner due to all the bailout spending and such going on, the current government programs are a drop in the bucket compared to the amount of currency vanishing from the monetary system due to delevering. Maybe in a few years, when the world's balance sheet is substantially smaller, rampant inflation can take hold, but right now the government couldn't cause inflation if it tried (and it'll start trying very soon).

 

People act on the basis of what they think will happen, and their vision of the future is not necessarily the same as what the two of you are expecting.

[sfcityduck]

I think there is real value in real estate right now. The best places to buy probably being where folks had their second homes that they can't afford now. I know that real estate prices in Bandon, Oregon, home of the famous Bandon Dunes golf resort, have crashed.

[VintageComics]

I think you already know the answer. The government can destroy the value of cash through inflation and is often tempted to do that in order to paper over deficits. While deflation can crush the value of hard assets, there is less temptation for the government to do that when the majority of the voters have significant debt.

 

That may happen...eventually. But fears of this happening in the near-term are misguided. It is wholly inaccurate to believe the government can just create inflation out of thin air at a time when the velocity of money has crashed and credit is imploding - otherwise Japan would have gotten out of their deflation long ago.

 

This is exactly right. While inflation superficially appears to be around the corner due to all the bailout spending and such going on, the current government programs are a drop in the bucket compared to the amount of currency vanishing from the monetary system due to delevering. Maybe in a few years, when the world's balance sheet is substantially smaller, rampant inflation can take hold, but right now the government couldn't cause inflation if it tried (and it'll start trying very soon).

 

People act on the basis of what they think will happen, and their vision of the future is not necessarily the same as what the two of you are expecting.

 

The other thing is that a lot of people don't know how to analyze charts, have the time to sit and wait for a time to sell or a time to buy or basically have a clue.

 

I think I have good instincts. I follow my gut and it usually doesn't fail me.

I'd rather make what I feel is a good decision based on logic and natural laws than study and scheme and guess.

 

From what I can see there are some things that never lose their lustre...especially nostalgia and gold (and silver...you know I'm a silver guy).

 

I'd rather park my money in something that I know people will want down the road and wait while the damage happens...I'm not bright enough to play the market.

 

In the end people will always want special pieces of nostalgia, will always want gold, and will always want someone who has those things.

 

R.

 

 

[VintageComics]

Oh, and this is not to disrespect your country, but they will not always want the US $.

 

 

[tth2]

Personally I'd rather keep the investors out.

Nah, more fun to fleece them and then buy books back at a fraction of what you sold them for.

 

It's a tried and true formula for this little hobby of ours!

[tth2]

"hard assets", like real estate, fine art and commodities, have tanked/crashed along with everything else

 

We had our house appraised last week for a re-fi that we're doing. We were concerned that its value may have "crashed", but the appraisal came back just 7% less than our last appraisal 3 years ago.

I KNEW IT! This just confirms that the housing bust in the US is just a big myth!

[tth2]

Only four zip codes in SF have shown increases in housing price. They are affluent neighborhoods: Cole Valley, Noe Valley, Russian Hill and Lake Street.

Further evidence of the myth of the housing bust!

 

In REAL property bear markets, NO areas go up in price.

[esquirecomics]

 

 

 

 

Wouldn't it be grand if life were so simple and care-free as portrayed by the little bunnies. <3

[VintageComics]

Personally I'd rather keep the investors out.

Nah, more fun to fleece them and then buy books back at a fraction of what you sold them for.

 

It's a tried and true formula for this little hobby of ours!

 

[selegue]

 

 

 

 

Wouldn't it be grand if life were so simple and care-free as portrayed by the little bunnies. <3

 

Yours isn't?

 

Jack

tra la

[Bronty]

Personally I'd rather keep the investors out.

Nah, more fun to fleece them and then buy books back at a fraction of what you sold them for.

 

It's a tried and true formula for this little hobby of ours!

 

 

you guys make it sound like its our hobby only. Its every hobby, its business, its human nature. Where there is fast money involved people will take advantage of each other if they can

[delekkerste]

Only four zip codes in SF have shown increases in housing price. They are affluent neighborhoods: Cole Valley, Noe Valley, Russian Hill and Lake Street.

Further evidence of the myth of the housing bust!

 

In REAL property bear markets, NO areas go up in price.

 

 

I think you're at least half-joking, but sometimes I just can't tell with you, Tim - one moment you're the paragon of reason and the next you're as giddy as any drooling fanboy out there.

 

Lies, damned lies and statistics, you know. These stats are usually calculated using the average sales price and can be easily skewed, particularly in affluent neighborhoods, by a few high-end transactions. That's exactly how Manhattan real estate kept "rising" last year, as sales of 15 Central Park West and other new super-luxury condos skewed the average sales price higher. Meanwhile, the man on the street knew full well that prices were softening.

[Silver Surfer]

Only four zip codes in SF have shown increases in housing price. They are affluent neighborhoods: Cole Valley, Noe Valley, Russian Hill and Lake Street.

I am going to look at a 3 story beach house tomorrow morning (1 block from gulf of mexico)... in 2005 this house was built and sold for $580K... it is a bank short sell with accepted price of $260K... talk about WOW

 

Rick how much does the price range jump if you buy right on the beach?

[G.A.tor]

Only four zip codes in SF have shown increases in housing price. They are affluent neighborhoods: Cole Valley, Noe Valley, Russian Hill and Lake Street.

I am going to look at a 3 story beach house tomorrow morning (1 block from gulf of mexico)... in 2005 this house was built and sold for $580K... it is a bank short sell with accepted price of $260K... talk about WOW

 

Rick how much does the price range jump if you buy right on the beach?

across the street jumps to $500K min, and on the beach is 7 figures no matter what shack is there...

 

and I have a contingent purchase on the 3 story house as of this afternoon

[Silver Surfer]

Only four zip codes in SF have shown increases in housing price. They are affluent neighborhoods: Cole Valley, Noe Valley, Russian Hill and Lake Street.

I am going to look at a 3 story beach house tomorrow morning (1 block from gulf of mexico)... in 2005 this house was built and sold for $580K... it is a bank short sell with accepted price of $260K... talk about WOW

 

Rick how much does the price range jump if you buy right on the beach?

across the street jumps to $500K min, and on the beach is 7 figures no matter what shack is there...

 

and I have a contingent purchase on the 3 story house as of this afternoon

 

"One Block from the Gulf of Mexico Con" in 2009?

[VintageComics]

Only four zip codes in SF have shown increases in housing price. They are affluent neighborhoods: Cole Valley, Noe Valley, Russian Hill and Lake Street.

I am going to look at a 3 story beach house tomorrow morning (1 block from gulf of mexico)... in 2005 this house was built and sold for $580K... it is a bank short sell with accepted price of $260K... talk about WOW

 

Rick how much does the price range jump if you buy right on the beach?

across the street jumps to $500K min, and on the beach is 7 figures no matter what shack is there...

 

and I have a contingent purchase on the 3 story house as of this afternoon

 

Where Rick?

 

I'm there in 22 hours!