william the wie
Gold Member
- Nov 18, 2009
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Another poster pointed out that trade deficits are a consequence of poor quality control. So why for the last 50 years has quality and to a lesser extent cost control been an endemic problem?
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Another poster pointed out that trade deficits are a consequence of poor quality control.
Another poster pointed out that trade deficits are a consequence of poor quality control. So why for the last 50 years has quality and to a lesser extent cost control been an endemic problem?
Another poster pointed out that trade deficits are a consequence of poor quality control. So why for the last 50 years has quality and to a lesser extent cost control been an endemic problem?
Actually in this case LBJ and Nixon created the basic problem with Guns and butter budgets that were constrained by wage and price controls in order to set off the Great Inflation of 1968-1982. The question is why haven't we reverted to the mean?
Actually in this case LBJ and Nixon created the basic problem with Guns and butter budgets that were constrained by wage and price controls in order to set off the Great Inflation of 1968-1982. The question is why haven't we reverted to the mean?
Inflation didn't take off until the global oil and food crisis began hitting in Ford's term as President and into the end of the housing bubble bust under Reagan. All that inflation is still with us, never went away, so we're basically at the new mean levels now, at least when using long term wholesale gold price averages as a reference for lack of a better one. I'm not sure what you mean; we're in a cycle that prudence would dictate deflation, but too many interests are desperate to keep the inflationary cycles rising, because of the havoc that real deflation would cause.
The Great Wave: Price Revolutions and the Rhythm of History: 9780195121216: Economics Books @ Amazon.com
Waves of Economic Development - Wikipedia
Much of the problem is easily fixed, but nobody wants to do it; take a cue from the ancient Jewish religious guidelines and do resets every few years where everyone adjusts their books and financial records back to more rational currency values. 'Jubilee Years' or something, I'll have to go look it up when I have time. Everybody rests their tallies to reflect real values again, and everybody stays on the same page relative to debts, equity, and inventory values. They did it every 50 years, but that was a much slower time; it can be speeded up for modern times to every 7 or 10 years.
It's outright ridiculous to have situations like 20 and 30 year home mortgages and 6 year auto loans. My grandparents thought 3 year mortgages were edgy and 7 year ones completely insane..
Actually in this case LBJ and Nixon created the basic problem with Guns and butter budgets that were constrained by wage and price controls in order to set off the Great Inflation of 1968-1982. The question is why haven't we reverted to the mean?
Inflation didn't take off until the global oil and food crisis began hitting in Ford's term as President and into the end of the housing bubble bust under Reagan. All that inflation is still with us, never went away, so we're basically at the new mean levels now, at least when using long term wholesale gold price averages as a reference for lack of a better one. I'm not sure what you mean; we're in a cycle that prudence would dictate deflation, but too many interests are desperate to keep the inflationary cycles rising, because of the havoc that real deflation would cause.
The Great Wave: Price Revolutions and the Rhythm of History: 9780195121216: Economics Books @ Amazon.com
Waves of Economic Development - Wikipedia
Much of the problem is easily fixed, but nobody wants to do it; take a cue from the ancient Jewish religious guidelines and do resets every few years where everyone adjusts their books and financial records back to more rational currency values. 'Jubilee Years' or something, I'll have to go look it up when I have time. Everybody rests their tallies to reflect real values again, and everybody stays on the same page relative to debts, equity, and inventory values. They did it every 50 years, but that was a much slower time; it can be speeded up for modern times to every 7 or 10 years.
It's outright ridiculous to have situations like 20 and 30 year home mortgages and 6 year auto loans. My grandparents thought 3 year mortgages were edgy and 7 year ones completely insane..
You grandparents had 25 year mortgages where the interest rates never changed. Interest rates began changing in the 1970's to 5 year renewables.
Actually in this case LBJ and Nixon created the basic problem with Guns and butter budgets that were constrained by wage and price controls in order to set off the Great Inflation of 1968-1982. The question is why haven't we reverted to the mean?
Definitely part of the problem.
You grandparents had 25 year mortgages where the interest rates never changed. Interest rates began changing in the 1970's to 5 year renewables.
A Little Bit of Mortgage History
That brought me to several out-of-print volumes from the National Bureau of Economic Research, which seems to have the best records out there.
Unfortunately, the details are still quite murky at best. You see, back then there were different types of mortgages, not like the ones used today.
While I don’t know when the very first 30-year fixed mortgage was created and issued (someone please tell me), they were believed to become widespread in the 1950s, which is why media references that decade.
Before that time, it was common for entities like commercial banks and life insurance companies to issue short-term balloon mortgages, often with terms as short as three to five years, which would be continually refinanced and never paid off.
These loans were also underwritten at LTV ratios around 50%, meaning it was pretty difficult to get a home loan.
Later, once the Great Depression struck, home prices nosedived and scores of foreclosures flooded the housing market because no one could afford to make large payments on their mortgages, especially if they didn’t have jobs.
Then came FDR’s New Deal, which included the Home Owners’ Loan Corporation (HOLC) and the National Housing Act of 1934, both of which aimed to make housing more affordable.
The HOLC, established in 1933, could explain why long-term fixed-rate mortgages are in existence today.
The purpose of the HOLC was to refinance those old balloon mortgages into long-term, fully amortized loans, with terms typically ranging from 20 to 25 years.
Another poster pointed out that trade deficits are a consequence of poor quality control. So why for the last 50 years has quality and to a lesser extent cost control been an endemic problem?
Another poster pointed out that trade deficits are a consequence of poor quality control. So why for the last 50 years has quality and to a lesser extent cost control been an endemic problem?
I am not sure what you mean exactly. Are you talking about product quality control? If so, then it is because it is easier and cheaper to replace something than it is to have it fixed usually. Part of that has to do with the rising cost of labor, and part of it has to do with the expanse of competition keeping costs relative low on the goods people most often replace. Let's take my dishwasher. no doubt it is original to the house built in 1980. Still works fantastic. If I were to buy a new one, I would be lucky to get five-ten years of it. The new ones are too high tech and hi tech is not made to last because they want you coming back for a new one in 5-10 years.
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