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Pretty much all the markets are going crazy right now, people are getting 100+k all-cash offers on top of their asking prices on their houses for sale, sp500 p/
by rawtxapp 5y ago
Pretty much all the markets are going crazy right now, people are getting 100+k all-cash offers on top of their asking prices on their houses for sale, sp500 p/e ratio average is at like 44, pokemon cards are increasing in value, etc.
What's happening is not specific to dogecoin/crypto in my opinion.
- plank_time 5y agoIn fact I just sold my house in SF Bay Area last month for $500k above listing price, all cash no contingencies. We are now renting in hopes that the market cools down but we are worried that this housing mania won’t stop and we will get priced out of the market. But for 500k above list, I couldn’t say no.
- almost_usual 5y agoThis is pretty much the gist of the article. People are worried about holding cash right now because they think it’s losing value. We’ve got trillions more about to be injected. All assets are priced high because of it. If you can get a low interest mortgage right now you’re in a good spot.
- 55555 5y agoAre you suggesting that buying a home right now is a good decision?
- almost_usual 5y agoI’m suggesting buying a home at a record low interest rate is a good decision if you can afford it, especially with inflation on the horizon. If you plan on staying there 10-15+ years and aren’t stretching financially I would buy.
- lottin 5y agoInflation doesn't make one investment opportunity more attractive than another.
- wulfricin 5y agoinflation makes buying stuff on credit more attractive, especially when you can get it with really low interest rates which everyone expect to rise sooner than later
- lottin 5y agoNot really... if everyone expects inflation to rise, it will already be priced in.
- unstatusthequo 5y agoNot everybody is clued in. Average random person on the street can’t even answer the question of how does money supply and inflation interact?
- gassius 5y agoPriced in, in what? Assets prices? That would make for, inst-ainflation, I guess... In any case, the thing is that cannot be priced into the rates of loans, because the same factor that will contribute to a rising inflation (increasing the monetary mass faster than real economic productivity) makes the loans very cheap by definition. I for sure would get into all the long term fixed low rate debt I can handle to acquire assets that I think will not depreciate as fast
- gassius 5y agoInflation does make long term debt with low, fixed interest rate very attractive
- lottin 5y agoOnly in retrospect, if inflation was unexpected. But if it was unexpected you couldn't have taken advantage of it, because, by definition, you weren't expecting it.
- refurb 5y agoList price is meaningless. When I was looking at Bay Area houses plenty of realtor set the listing price intentionally low to drum up interest and a potential bidding war. It’s like the house that went for $1M over list. Sold at $2.1M, just like the other comps in the neighborhood. The list price was $1M below comp.
- hkt 5y agoAbsolutely. There is an epic amount of cash floating around which can't be productively invested. So it chases trinkets instead.
- enos_feedler 5y agoWe need $2000 phones now.
- 55555 5y agoSmart.
- alexashka 5y agoI don't get the 'can't be productively invested' part. Why not? Please no one-liner strawman explanations :)
- ajmadesc 5y agoWages for the working are so low there isn't any demand because all of their money is spent on necessities. The majority of the western world's economic output is collecting rents
- mockingbirdy 5y ago> The majority of the western world's economic output is collecting rents Would love to read more about this, do you have any links?
- ajmadesc 5y agoBooks: -Survalence capitalism -Rentier Capitalism -The Corruption of capitalism Watch a YouTube video about 'Capital in the 21st century'
- refurb 5y agoWages are so low? Wages are up. There isn’t any demand, it’s all spent on necessities. So demand for necessities. Majority of economic output is collect rents. Huh?
- ayngg 5y agoI pretty much think this is the case too, most of these things are soaking up excess liquidity that is leaking from the financial system. It feels more like every canary in the coal mine is going off, but people are focusing too much on the birds passing out and not the things that are causing them to do so.