New Housing Bubble and Financial Crisis Redux

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Greetings,

My new tax assessment was no surprise. New neighbors paid nearly double above my estimated valuations. My surprise was a 47.22% jump! The math portends a 2008 curtain call. (29)

Homebuyers' math begins with the monthly payment. With record low rates from governments propping up economies with floods of money, lower payments means one can pay a higher price. Market forces responded to this consistent, now structural, inflationary money bubble. (40) 69

Can we stop this new "irrational exuberance." Yelsin, Federal Reserve head, knows to raise rates risks a recession or worse. "Quantitative easing" is as viable as a dam's spillway after the dam has burst. 34-103

In 1982, I wrote "Homeowners don't beat inflation" which stated rising home prices would inflate living costs. Trade deficits drove inflation. Foreign businessmen bundled profits to buy US property, e.g., Chinese buying homes for college-bound kids. A financial crisis was inevitable. 42-146

A cradle-to-grave timistic analysis (units of time) shows home inflation cheapens the homeowner's life. In 1968, my grandfather sold his middle-class home for $20,000. It would buy five years in a nursing home. Today, an average home has ten-times the funny numbers but only 40% of the time value: $200,000 buys two years in a nursing home. 60/206

Real value is not funny numbers on funny paper. It is the paper's human time value.  Today's high-priced houses are worth less time. 23/229

Annual, persistent inflationary losses worsen the final bottom line. A bag of chips is my inflation gauge. In 2000, a 4-ounce bag cost $.29. Now, $1.49! Only hermits on hunger strikes can claim no inflation. 34/263

Again, economists echo the mantra of a new economy with new rules. Bah! Igknowance of Mother Nature's law is no escape. Fools and their time are soon parted, e.g.,  "rich" homeowners with no retirement.

Thanking you in advance for any time and consideration,

Robert S. Barnett
3600 Anne Street
Richmond, VA
804-233-7541

P.S. If you think this is too long, but worthwhile, could you forward to OpEd page editor? Or, it makes wonderful kindling for the fireplace.

Just for the fun of it:

INFLATION: AN INFLATED WORD

'Twixt old apples and oranges now on sale,
Lie inflated gestures of hidden gold.
Inflation's gist? A harsh and schizoid word,
Wreaking havoc on fools, both blind and bold.

Against endless pain of unstopped 'flation,
Dins flattery, harping empty hedges.
Flares cries for strikes, but no gain of substance,
'Cept again, the middleman who fudges.

Before ancient reawaken groans will fade,
The flatulence of minds confused must pass.
Ask not of pols, long-winded talks possessed,
From them, again, you'll buy colluded gas.

Can "up and down" be found to sprout,
From a singular semantic seed?
Faults so planted yield fruits not ripe nor cured;
Blooms but benumbing stale, noxious weed.

Of all things both inflated and cheapened,
"Inflation" flames above as most abused.
Our sad singeing, suffering slide will stop,
When bifid 'flation's tongues are fused.