Friday, September 06, 2019

I'm starting to get really sick of this crap.

"Wall Street’s move toward all-time highs comes as recent U.S. economic data suggests a recession may not be in the cards while the Federal Reserve is expected to cut interest rates later this month." Source.

The government doesn't lower interest rates for NO REASON. The New York Fed is now forecasting growth at 1.1% on it's own website.

I honestly have never seen so many mobile homes on the market in my city. Right now there are five when it's unusual to see one. The new crop is not the well kept type like I have been talking about recently. And they are taking price cuts left and right. Everything is taking price cuts! But I have been talking about the mobile homes because they are the most affordable. One is going for as low os 50 grand.

When people's houses go down in value they cut back on spending. It doesn't matter if it's a million dollar McMansion or a low end trailer. Those are just the facts.

Now we might not meet the technical definition of a recession which is three quarters of negative growth, but we didn't get that under Obama either. It doesn't mean that things didn't suck hard.

A few months ago when I started talking about negative interest rates ( in July in the comments section) it was sort of crazy talk. Now it's being accepted more and more every day. And then today I read that Bed Bath and Beyond is talking about closing stores.

The Fed doesn't come out to say they are not expecting a recession when we aren't going into a recession! At least that has been my experience with recessions. The only time they do that is when things don't look good. Last year they didn't say that! Because things looked stronger.


  1. Lot of mobile homes on the market? Well... the cost of living around here is insane, and there do seem to be a lot of lower-paid workers either moving out of the area or thinking about it.
    The price of mobile homes in the Bay Area a few years ago was totally nuts; I think I was seeing prices reflecting $200K or more of "equity" in a rented parking space. When rents went up, naturally the pseudo-equity went poof. So now the mobiles are priced closer to what you'd see elsewhere... plus ruinously high monthly space rent. I'm not sure the economics of mobiles here make sense at this point (not that they did before).

  2. YES! Exactly!

    This is why this whole thing stands out so much. A year ago it would have taken 200k to get into a mobile home. Now they are being priced more like other States. The economics of mobile homes don't make sense. If you don't own the land you don't really own anything. But a year ago the economics of mobile homes didn't matter. All of a sudden it does.