January 1, 2014

New Year Predictions

What are your housing bubble predictions for the new year? oo ago. “2013- The long delayed and overdue correction in housing prices to dramatically lower levels in the northeast will resume full force.”

A reply, “Why do you think 2013 will be the year that myriad government interventions to support housing prices will suddenly fail?”

One said, “Not trying to evaluate individual decisions, only looking at the broader market, I continue to believe: 1. Sentiment is more powerful than interest rates; 2. Prices are set on the margin; 3. The highest earning renters have the potential to drive the market–other renters get hosed by higher rents and home prices…ultimately forcing them to double-up, etc. if their salaries are not high enough.”

And another, “1: Price of oil will go down below $80/brl due to dropping demand of US consumers and European consumers + new sources being brought online. 2: US officially enters recession. 3: Gold goes down below $1,500/oz. 4: Canadian real estate begins to crater and Canada bails out its banks. 5: China experiences another Tianamen Square incident as their economy cools.”

A reply, “I disagree with 1 and 3 but agree with the rest. I think that Assad falls and Iraq is destabilized causing higher oil and gold prices.”

One had this, “Bye-bye Mayan doomsday. Hello ‘Fiscal Cliff.’”

And finally, “The US will run out of land.”

Bits Bucket for January 1, 2014

Post off-topic ideas, links, and Craigslist finds here.