What is Digg?52 Comments
- Akaziel, on 07/14/2008, -0/+40Buried because this article has nothing to do with post-apocalyptic RPGs. I'm sorely disappointed.
- louiebaur, on 07/12/2008, -1/+15Right now I am in just sit around and wait for it to get better mode and not really worrying about it. Good think I locked in when times where better!
- gettophilosophr, on 07/14/2008, -1/+12Wow. I guess I'm the only guy thinking this was an article about nuclear fallout in metropolitan areas affecting desirability of real estate. :-P
- CitrusC, on 07/14/2008, -0/+10I'm sick to death of misleading Digg titles, quite frankly. = [
- jcsoc, on 07/14/2008, -0/+9exactly
- darkchild82, on 07/14/2008, -2/+10Yeah, Fallout 3 is a long way off from release anyway!
- inactive, on 07/12/2008, -2/+10I wish I had the cash to buy an house right now, while they are soooo cheap! It's really the best time to buy if you can afford. Buy it now, do some renovations and sell it in, let's say 10-20 years, when the economy is back up and that the prices are back up. Easy profits ;)
- dudefather, on 07/14/2008, -0/+7The value of my home has dropped due to Radscorpions in the area
- SaladCactusKing, on 07/14/2008, -0/+7The Pip Boy predicts a drop in home market sales today.
- zentimo, on 07/14/2008, -1/+7Ditto
- ZenMojo, on 07/14/2008, -0/+6And here I was, all ready to make a joke about aiming for the crotch, it's the Super Mutant's weak spot. Damn.
- inactive, on 07/12/2008, -1/+7the housing market is brutal right now. Hopefully it picks up.
- YodaJones, on 07/14/2008, -1/+6This is just going to get worse as the dollar plummets and gas prices rise. The ongoing war will keep this situation from getting any better as the country goes bankrupt.
What will ultimately make our politicians honest? Armed citizens. Lots and lots of angry armed citizens.
Buy guns. Lots of guns. - inactive, on 07/12/2008, -2/+7hmmm...maybe I should rethink buying a new house
- inactive, on 07/12/2008, -1/+6Good find, interesting read.
- drlha, on 07/14/2008, -1/+6Typically if you can stay in a house for 10-20 years, you're going to make a profit no matter how the market was when you bought it.
- LenBaird, on 07/14/2008, -1/+6Banks don't loan money that they take in on deposits. I guess I shouldn't be surprised that the New York Times lies and says they do, but anyway... They take that money they have on hand and multiply it by ten. Yes ten! The 90% of the loan not covered by their reserves is manufactured magically out of thin air, according to a system called "fractional reserve banking." Google it. The current reserve ratio is 1/9 . They don't have the money that their books indicate they do... doesn't stop them from charging interest on the pretend money, and confiscating your home if you don't pay it back, though.
- rasde, on 07/14/2008, -0/+5nope, not fallout 3 content.. nothing to see here boys...
- zentimo, on 07/14/2008, -0/+4But how will Fallout 3 affect house prices? That's the crucial question...
When people realise that the nuclear apocalyse is nigh, it'll change the entire nature of the housing market. City centre flats will tumble in price, remote mountain bunkers (or "Vaults", if you will) will become prime value properties... - sodade, on 07/13/2008, -2/+5I locked in a super low rate on a 15 year mortgage and have moved most of my 401k savings into emerging markets so the falling american dollar and these failing institutions wouldn't hurt me. Unfortunately, I will have to pay for these trainwrecks through my taxes. As an American, there seems to be no way to avoid getting ***** by the malfeasance allowed during the Bush years.
- inactive, on 07/14/2008, -0/+3I'm not buying or selling any home, just loaded my portfolio with ABK and MBI.
- LenBaird, on 07/14/2008, -1/+3So my question is this. If they don't have the 90% on hand when they loan it out, where does it come from? Say bank starts from scratch. They have 100 dollars, and are allowed to loan out 1000. Where does the 900 come from?
- alexkreuz, on 07/14/2008, -0/+2Why don't you re-read what I wrote.
I said, I hope MBI and ABK don't go the way of IMB.
You do know what happened to IMB right? - mustang460, on 07/14/2008, -1/+3its slated for an 08 release, hardly far off
- inactive, on 07/12/2008, -2/+4That kind of spike wouldn’t be too unusual at a time when rates often rise and fall by at least that much over a period of weeks, for any number of reasons.
- ripple123, on 07/14/2008, -0/+2I think its kinda like the bit before they spear the horse line in that battle in Braveheart. Id hold off buying a house imho.
- darienphoenix, on 07/14/2008, -0/+2Internet winner.
- inactive, on 07/14/2008, -0/+2 As much as I can't stand Bush I just wish people wouldn't think our financial situation was caused by any one party. Our whole system has been rotten for years on both sides of the aisle, the democrats will offer no relief.
- GlassAgate, on 07/14/2008, -0/+2I really don't like living in a neighborhood where the children
glow in the dark and have more arms than normal. Also, that
dog, over there. It can devour a truck, in one night. I really
don't think that I want to live here. Now, if you'll tell me how
long until I'll recover from this nasty radiation sickness, I'll
be on my way.
Actually, at first, I thought it was about what kind of controversy
will come about after Fallout 3 is released. - sporg, on 07/14/2008, -1/+3You are right a large part of the economy is based on funny money these days. You wont win friends by pointing it out though as most have faith in the system and refuse to see any danger in it.
- inactive, on 07/14/2008, -1/+3 Spiff you seem to understand that the money isn't really there but for some reason the term, "out of thin air" rubs you the wrong way. Don't you seem the dishonesty inherent in the practice? I think saying they create the money, "out of thin air" is a great way to put it.
- sporg, on 07/14/2008, -0/+1 Believe what you like we will see who is wrong soon enough.
- inactive, on 07/14/2008, -1/+2MBI, not IMB dude.
- thespiff, on 07/14/2008, -1/+2"Fractional Reserve Banking" means that a bank must have 10% of deposited money available for withdrawal at all times. It DOES NOT meant they manufacture money out of thin air. It just means that if everyone tried to withdrawal their deposits from the bank at the same time, well, only 10% of the money demanded would be available. The rest is loaned out.
http://en.wikipedia.org/wiki/Fractional_reserve_ba ... - inactive, on 07/14/2008, -0/+1When the economy tanks even more local cities will probably try new scams to raise property taxes to make up for the shortfall.
Seems like a home is an ATM for the tax man.
California cant wait for all the older people to die off so their properties wont be protected under "Proposition 13" that protect against unjust property Taxes.
I don't understand the long term benefits of owning a home and then owing the bank money for 20 or 30 years when everyone has their greedy hands in your pocket for taxes and interest rates. - alexkreuz, on 07/14/2008, -1/+2Good luck with that. Hope it doesn't go the way of IMB. I know people who had the same idea when it came to IMB.
- zentimo, on 07/14/2008, -0/+1LOL, that's the best metaphor I've yet heard applied to the housing crisis...
"Hold...HOLD!" - DestroyFascism, on 07/14/2008, -0/+1As long as this war continues there will be fewer people buying homes. (And to a banker that is a net loss on nearly 1 million dollars for each soldier that dies or is disabled.)
- LenBaird, on 07/17/2008, -0/+1http://www.lewrockwell.com/rothbard/frb.html
The section on fractional reserve banking is partway down the page
"Fractional Reserve Banking
Let's see how the fractional reserve process works, in the absence of a central bank. I set up a Rothbard Bank, and invest $1,000 of cash (whether gold or government paper does not matter here). Then I "lend out" $10,000 to someone, either for consumer spending or to invest in his business. How can I "lend out" far more than I have? Ahh, that's the magic of the "fraction" in the fractional reserve. I simply open up a checking account of $10,000 which I am happy to lend to Mr. Jones. Why does Jones borrow from me? Well, for one thing, I can charge a lower rate of interest than savers would. I don't have to save up the money myself, but simply can counterfeit it out of thin air. (In the nineteenth century, I would have been able to issue bank notes, but the Federal Reserve now monopolizes note issues.) Since demand deposits at the Rothbard Bank function as equivalent to cash, the nation's money supply has just, by magic, increased by $10,000. The inflationary, counterfeiting process is under way. "
Here is a page with the credits of the author of that article
http://www.lewrockwell.com/rothbard/rothbard-lib.h ...
"Murray N. Rothbard (1926-1995) was the dean of the Austrian School of economics, the founder of libertarianism, and an exemplar of the Old Right. The author of thousands of articles and 25 books, he was also Lew Rockwell's great teacher and mentor." - wtfpwned98, on 07/14/2008, -0/+1Dude, it's totally IBM, and I wouldn't worry about it...pretty solid.
- thespiff, on 07/16/2008, -0/+1THEY DON'T MAKE IT OUT OF THIN AIR! A new bank opens. I give the bank $100. The bank now has $100. But they are only required to stick $10 of that money on a shelf in the vault. The rest of that money, they can loan out to somebody else. The money is very much real, because I gave it to them. That is fractional reserve banking. The bank just then went ahead and gave that money to somebody else. There is no NEW money.
The scary thing happens when I show up at the bank and say "Give me my $100 back." Because the banker walks into the vault, looks on the shelf and says "Oh *****, I only have $10 here because I loaned the rest out to some other guy." This is bad for me because in order for me to get my $90 back I have to wait until the other guy pays the bank back the loan that he took which was paid with my money.
This rarely happens in practice, because lots of people deposit their money, and usually only withdraw it a little at a time. So the bank always has enough money on hand when I demand it.
Throughout this whole procedure there has never been more that $100 in anybody's pocket. The imaginary part is that I think I have $100 available to withdraw if I want it, no matter what. It's not a question of whether the money is real or not, it's a question of whose pocket it's in. If the banks collapse, they don't lose imaginary money. They lose my money. And as a result, I lose my money.
If you guys still don't get this, then I give up. Please read the wikipedia article. And pay attention in your economics class. I realize it's probably at 8AM, but it's good for you. - klco, on 07/14/2008, -0/+1He probably meant your selling price would be higher than your purchase price. And I am not entirely sure its fair to include maintainance costs as that's really just 'cost of living'
- darkened, on 07/14/2008, -1/+2It would much sooner if we keep the government hands off but they've already stuck there hand in every cookie jar available. Free markets would resolve this issue by itself, it doesn't need government intervention.
- darkened, on 07/14/2008, -0/+1And the sheep bury you, and people wonder why our housing market is going through what it is today.
- katich, on 07/14/2008, -0/+0The Agriculture Department says economic growth in developing countries, tight global grain supplies and demand for ethanol have pushed corn prices to record or near-record prices.Go at http://xil.in/5456/ to more updated.
- jcsoc, on 07/14/2008, -5/+5hahahaha suck it!
- thespiff, on 07/14/2008, -2/+1Actually, he is wrong.
- sporg, on 07/14/2008, -5/+4Homes do not appreciate in value inflation just makes them look like they do. Contrary to popular belief your home is a liability not an asset.
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