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Everything expensive
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jasonfaxingliu
Senior |
16-Dec-2007 15:47
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not just dream to have something, I suffer losses from Aug till now for the subprime saga over 150K... so how hard it is... and stock market is make a little but potential to loose alot |
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scotty
Senior |
16-Dec-2007 15:33
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My dream of that condo and that new car got wiped out by the stupid stock market and the increasing cost of living here. |
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hogenterprise
Senior |
16-Dec-2007 14:32
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so that pay hike can be justified. |
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ten4one
Master |
16-Dec-2007 09:00
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When everything is expensive, you salary is always seen as relatively cheap! In fact, the stock market is not expensive should be good for you isn't it?????????? Cheers! Easy Money.....Easy Spendings.....Easy Debts..........Easy Bubble....... Quick POP....Fast Death! |
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jkbk007
Senior |
14-Dec-2007 22:40
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Easy Money There have been minor corrections, but nothing approaching a general crash. There was simply too much money in circulation worldwide for that to happen. Those who were invited to the party could practically do nothing wrong. And those were the rich of this world, the people who had enough surplus income to invest it profitably. The gap between rich and poor only became wider. The share of profits and yields on assets as a percentage of overall budget income increased by 10 percent in the past seven years, but this growth is not evenly distributed. Low-income earners rarely own stocks, bonds or apartment buildings. Their net income has declined by 5 percent in recent years, while the richest 10 percent of the population have in fact added 10 percent to their incomes. Beginning in mid-2004, the central banks tried to contain the flood they had released by gradually raising interest rates. But the volume of available money was simply too large and the central banks' baby steps on the interest rate curve were too small. The situation had become self-propelling long ago. The volume of money continued to grow. The US real estate bubble had hardly begun sending shock waves around the globe this summer when the Fed took a step backward and hectically lowered the prime rate by half a percentage point. But this places the ECB in a predicament. It has a choice to make, but only between two evils. If it raises rates, the euro will become even stronger, making European products more expensive outside the European Union. This would be more than awkward for Germany, one of the world's biggest exporters. But if the ECB keeps interest rates at the same level or even follows the Fed's example and lowers rates, we could face a "prolonged phase of inflation," says Thorsten Polleit, chief economist at Barclays Capital Deutschland, "and probably at a rate significantly higher than 3 percent." Prices Rising All Over the World There are many indications that Polleit is right. Prices are rising sharply, both in Germany and other countries. In a globalized world, rising prices are no longer such a purely national phenomenon as they were only 10 years ago. The emerging markets, in particular, are now demanding payback for the many years they have spent producing and exporting textiles, toys, refrigerators and many other goods for low wages. These countries are now seeing both income growth and higher prices. In China, for example, the more than 15 percent rise in food prices is almost entirely responsible for overall inflation, International Monetary Fund (IMF) experts concluded at their fall conference in Washington. China's inflation rate is approaching 7 percent. Inflation has already reached 17 to 25 percent in Argentina, despite the fact that the government has manipulated the figures downward to less than half these levels. Inflation is also sharply on the rise in South Africa, Russia and India. Wealthy People Less Affected If goods and services become consistently more expensive in Germany, this will only widen the gap between rich and poor. Inflation always has the most drastic impact on people with lower incomes, who spend a larger percentage of their disposable income on ordinary consumer goods than high earners. Although higher prices also mean higher wages and salaries, the tax authorities are the first to benefit from the incremental earnings -- but not when it comes to high earners. Not much changes for those who have already reached the highest tax bracket, while everyone else is affected by what is known as cold progression: the marginal tax rate changes with each additional euro in income, resulting in a more uneven distribution of the tax burden. Those who have money can also attempt to beat inflation with evasive strategies. Existing loans, such as mortgage loans, become cheaper relative to income. Besides, high earners can shift their assets to inflation-proof investments like gold or other precious metals. The public continues to welcome low interest rates. Haven't they contributed to the booming economy? And to the stock markets reaching new record highs? And while the financial crisis may be worrisome to anonymous big bank executives in their offices high up in glitzy skyscrapers, it hasn't affected the real economy. Right? For Polleit, this is an illusion. "The monetary watchdogs run the risk of succumbing to public pressure, thereby losing sight of their real job, which is to keep the value of money stable," he says. |
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geojam2
Member |
11-Dec-2007 12:19
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also the bank FD is not going up. |
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pikachu
Veteran |
10-Dec-2007 21:30
Yells: "Holy Cow!" |
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Everything is now expensive... food, petrol, housing. The only thing not going up substantially is my pay check and the stock market. 
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