The wealth creation engine in the Bay Area must have kicked into even higher gear, if at all that’s possible. Merc News is reporting that homes are becoming more affordable rather than less
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You’ll only need $31M if you give me $1Mil not to contact your wife 
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He has less than 13🤦♂️
25% extra money was pumped into the economy since the covid breakout. If home prices did not rise in same proportion, should not that be a matter of concern?
Fed seems to be in no hurry to stop printing money. Indeed, Jay Powell is seen by many as a hero because he printed money and reduced interest rates to 0.
A lot of that money has gone to inflate tech stocks since tech is the big winner post-COVID. Higher tech stocks drive Bay Area home prices higher.
Seems to me that the stage is set for Bay Area home prices to go another 10-15% higher by next spring if the status quo of money printing, low interest rates and high tech stock values continues
PARTY ON BAY AREA, nothing on the horizon to spoil the fun!
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I can understand that part, but I get nervous when the only factor for the price increase is additional printed money. A small disturbance in the system can (and will) set off an avalanche, and the things start falling down. I am not sure if the further money printing will stop that avalanche. Easy money is the most important contributor to the bubble. I would want the true value of bay area homes to appreciate than to just keep up with money printing (because as soon as the money loses value, so will bay area homes)
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I agree that the indiscriminate money printing weakens the financial system in the long run even though it seems like a good thing in the short run. It is exactly like a performance enhancing drug in that regard.
The big problem I see is that by printing huge amounts of money, the Fed has messed with the very yardstick by which the value of real assets like stock is measured. It really messes up the true value of housing in an irreversible way.
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Debauchery doesn’t console, Ovaltine does.
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Went to company group lunch last week to meet with colleagues for post covid reopening. Everyone talked about how money printing is hurting US economy and squeezing poor and middle class out. This makes an interesting observations because just ten years ago, I used to find it very difficult to explain the concept of money printing to a common Silicon Valley engineer. Now they explain it better than I can. In fact I was booed out when once (about five years ago) I mentioned that government wants to create inflation. Governments and Bankers (and borrowers) fear deflation but consumers and savers (and lenders) benefit from deflation (who does not like prices to fall and goods to become cheaper so that you have to work less to get the same?). Just yesterday, a friend of mine talked about this topic and I had to explain deflation is as natural process as gravity. Just as gravity occurs without putting any effort, deflation is spontaneous and requires no effort.
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Execuse my ignorance. Do not understand the underlying joke. Any help?
I interpreted it as “chocolate does”
…and he thinks there’s no inflation 