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Author Topic: Gas Prices, housing and the slow economy Back to Topics
teafortwo
Champion Author
Washington

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Message Posted: Nov 24, 2012 12:00:38 AM

Several respected analysts theorize that increased commuting costs generated the collapse of housing markets in the latter part of the last decade and fueled (excuse the pun) the five-year-long economic malaise in the United States.

Steven Sexton and his colleagues at the University of California's Center for Energy and Environment Economics suggest that low energy prices during the housing boom, in combination with lax lending practices and new mortgage products, made suburban houses affordable to a new class of homeowners with low incomes, high leverage, low credit worthiness and long work commutes.

While cheap fuel prices lead to urban sprawl and the expansion of homeownership, dramatic increases in fuel prices disproportionately impacted suburban homeowners. High commuting costs
Visit ocregister.com for full article
REPLIES (newest first) Post a Reply
Amendes
Champion Author Fresno

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Message Posted: Nov 26, 2012 5:32:14 AM

OK
DrCashFlow
Champion Author Massachusetts

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Message Posted: Nov 26, 2012 5:30:58 AM

lax lending practices and new mortgage products, no effective oversite by govt agencies, and pure speculation and greed led to latest bubble to ultimately pop. broad market averages even money to be cut in half from election day 2012 to election day 2016.
cheap59
Champion Author Michigan

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Message Posted: Nov 25, 2012 8:12:33 AM

That's not all.
SammyAdams
Champion Author Tallahassee

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Message Posted: Nov 24, 2012 7:32:08 PM

To: GDAE Re: Message Posted: Nov 24, 2012 1:30:50 AM (Printed below)

What a crock. So I guess all the trillions we spent on two wars didn't factor into the collapse?

============================================================

Good point, GDAE, and one that is often overlooked. While the Democrats promote spending for the "welfare" state, the Republicans favor spending US into oblivion using the "warfare" state. Bush's Iraqi war was not declared by Congress like the Constitution demands and it was based on what was later revealed to be "bad intelligence", because they never found those weapons of mass destruction, did they?

So it doesn't really matter which major Party occupies the Oval Office because SPEND-SPEND-SPEND is guaranteed. It took from Washington's administration through that of Jimmy Carter to amass $1 Trillion of debt. Now, with BO, we have an ANNUAL DEFICIT that exceeds that amount. Look for near confiscatory taxation and hyper inflation to come. America (Although it doesn't need to be) is just about doomed.

PDQBlues
Champion Author San Diego

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Message Posted: Nov 24, 2012 7:11:05 PM


Certainly there are many factors that contributed to the economic problems we face today. I think the loss of a strong middle class on top of the deregulation of the banking industry were still the major contributors.
teafortwo
Champion Author Washington

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Message Posted: Nov 24, 2012 4:06:41 PM


FROM THE ARTICLE:

Clearly, there are more powerful variables than gasoline prices driving the slow economy, among them the collapse of subprime mortgages and related problems in mortgage-backed securities and the decline in purchasing power related to unemployment and underemployment.

While the price of gasoline may have affected housing values and certainly affects household budget decisions, the impact of both on household location decisions will require more knowledge. Clearly, analysts need to link different household and housing characteristics to urban employment patterns, including the suburbanization of employment. In this context, it's too early to conclude that continued high gas costs will lead to a revival of central cities and a corollary decline of the suburbs.

More likely, continued high gas costs will directly reduce the housing and job choices of the poor, near poor and moderate income groups. Over time, this will lead to increased market and geographic segmentation of housing and jobs. It sounds like America might be on its way back to the future. I hope not.

amerk73
Champion Author Dallas

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Message Posted: Nov 24, 2012 12:54:11 PM

gas prices good economy
schatzila
Champion Author Los Angeles

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Message Posted: Nov 24, 2012 12:49:01 PM

It's from our of buying things we couldn't afford.
clpassenubye
Champion Author Los Angeles

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Message Posted: Nov 24, 2012 12:20:58 PM

This is absolute hogwash the fact is when people get loans self adjusting loans for homes with overinflated prices at some point the loan will become unaffordable. As someones said increasing costs didn't help the situation but it didn't cause it either.
crep1291
Champion Author Ottawa

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Message Posted: Nov 24, 2012 11:39:14 AM

Surely, high gas prices didn't help one bit. But the housing market in some parts of the country was a large contributor to its own collapse. People were flipping houses every 6 months with a 25% gain. That's just ridiculous and unsustainable.
playtimeCLE
Champion Author Cleveland

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Message Posted: Nov 24, 2012 8:57:38 AM

It pays to buy a house close to work.
Straitliner
Champion Author Illinois

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Message Posted: Nov 24, 2012 8:35:14 AM

Shoppers will shop no matter what and spend money they dont have.We have a long way to go before we get back where we were.
FPLREP
Champion Author Virginia

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Message Posted: Nov 24, 2012 7:43:52 AM

Forecast for the next few years: take note of what the stock market did the two days after the election. That is an indication of what money managers think will happen.
07skydriver
Champion Author Ohio

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Message Posted: Nov 24, 2012 6:48:49 AM

If you think the economy is slow now, be glad Mhit & the GOP are losers.
If you think the economy is slow now, do something about it.
You're kidding, right? Did you see all the shoppers yesterday?
If you think the economy is slow now, it might be you.
MN1
Champion Author Twin Cities

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Message Posted: Nov 24, 2012 6:45:34 AM

Sure
Nancy&Len
Champion Author Cleveland

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Message Posted: Nov 24, 2012 5:18:48 AM

If you think the economy is slow now just wait until next year when all those tax cuts go away and the new taxes kick in. The middle class is doomed.
angel4me
Champion Author San Jose

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Message Posted: Nov 24, 2012 3:51:09 AM

there are various factors that swing the economy
FluffyDogAttack
Champion Author Riverside

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Message Posted: Nov 24, 2012 2:17:09 AM

The Unemployment in my county (Riverside) has been over 12% for nearly 4 years. It did dip down to 11% for a month or two though. Wooooo Hoooo! Things are looking up.

.

.

Not
menagerie1013
Champion Author San Diego

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Message Posted: Nov 24, 2012 2:05:04 AM

The economy sucks.
chuckhermann
Champion Author New York

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Message Posted: Nov 24, 2012 2:02:29 AM

Between annual tax increases, energy increases, and no raise, something has to give sometime...
Rooster922
Champion Author Wilmington

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Message Posted: Nov 24, 2012 2:00:39 AM

Bad combination.
bobdec
Champion Author Miami

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Message Posted: Nov 24, 2012 1:56:34 AM

The economy is not happening, and will get much worse
jorod55
Champion Author California

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Message Posted: Nov 24, 2012 1:55:29 AM

Send them to school. Buy them books. What do they do?

Eat the pages...
Ray_10589
Champion Author New York

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Message Posted: Nov 24, 2012 1:54:26 AM

what is the truth
NAVYHM
All-Star Author Cleveland

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Message Posted: Nov 24, 2012 1:53:33 AM

YEAH... THATS THE REAL REASONS...
retired23
Sophomore Author Oakland

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Message Posted: Nov 24, 2012 1:52:52 AM

The blame game.
kd5kpd
Champion Author Texas

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Message Posted: Nov 24, 2012 1:52:51 AM

SSDD
krobp46
Champion Author Milwaukee

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Message Posted: Nov 24, 2012 1:48:01 AM

Speculators with the power to change our economic landscape
SBlouch
Champion Author San Antonio

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Message Posted: Nov 24, 2012 1:47:49 AM

Interesting and sure hope it doesn't happen again.
defiancegasman
Champion Author Ohio

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Message Posted: Nov 24, 2012 1:47:22 AM

BUT,BUT,BUT..."AMERICA'S ADDICTED TO OIL" so according to BUSH, BIG OIL CAN CHARGE WHATEVER THEY WANT!!
PrinceLH
Champion Author Ontario

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Message Posted: Nov 24, 2012 1:39:13 AM

Greed, plain and simple.
Vette1967
Champion Author Albany

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Message Posted: Nov 24, 2012 1:37:53 AM

GDAE: Good point...along with the mortgage lenders too.
MinnesotaDJ
Champion Author Minnesota

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Message Posted: Nov 24, 2012 1:36:31 AM

What did you expect with NOBAMA as our chief dictator?
SparkieMi
Champion Author Kalamazoo

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Message Posted: Nov 24, 2012 1:33:19 AM

Surprise, surprise.....
CarefreeVT
Champion Author Burlington

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Message Posted: Nov 24, 2012 1:32:07 AM

Another useless study by the Univerisy of California... maybe if they did some research on Industrial Biofuels like Industrial Hemp so it could last longer in colder climates or why its sister plant should be used instead of anti-inflamitory, TN inhibitors, pain killers or other medications for arthritis patients, maybe something interesting might come from that usesless University... really? Gas prices caused the depression starting with the housing crisis we are currently in? Nice try... NEXT.
Happytalk
Champion Author Pennsylvania

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Message Posted: Nov 24, 2012 1:31:22 AM

I will stay here
GDAE
Champion Author Wichita

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Message Posted: Nov 24, 2012 1:30:50 AM

What a crock. So I guess all the trillions we spent on two wars didn't factor into the collapse?
jimgraham
Champion Author Akron

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Message Posted: Nov 24, 2012 1:28:32 AM

Only in California.

Around here the suburban areas did not suffer anywhere near as bad as the urban and inner city did.
hubcapLA
Champion Author Louisiana

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Message Posted: Nov 24, 2012 1:25:01 AM

Need proof
btex49
Champion Author Austin

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Message Posted: Nov 24, 2012 1:20:55 AM

Ridiculous article.
badharley
Champion Author Tampa

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Message Posted: Nov 24, 2012 1:19:46 AM

Well?
silverfox63
Champion Author Michigan

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Message Posted: Nov 24, 2012 1:19:35 AM

Not much of an article that I would actually believe due to the writers of it.
TBONE3
Champion Author Pennsylvania

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Message Posted: Nov 24, 2012 1:18:05 AM

And?
BM4225
Champion Author Atlanta

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Message Posted: Nov 24, 2012 1:14:59 AM

And some people still have not learned to figure the cost of the commute. I have a fellow worker who purchased a home last year now complaining that he has no extra money for his hobby. His house payments are less than his rent was, but when you add in the cost of water, garbage pickup, and the increase in heating & cooling cost it is now running him around the same amount if not a little more. So what is the problem? Well it may have something to do with the fact that he must now drive 60+ miles extra a day, and his vehicles get around 10 miles to the gallon.
SteelPenny
Champion Author Dallas

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Message Posted: Nov 24, 2012 1:14:55 AM

Bend over - grap ankles.
jrschl
Champion Author Louisville

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Message Posted: Nov 24, 2012 1:14:52 AM

How about peoples' spend before you earned it mentality? Stop pointing fingers and look in the mirror.
Dodge_Me
Champion Author Atlanta

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Message Posted: Nov 24, 2012 1:12:49 AM

Dah
SensAL
Sophomore Author Ottawa

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Message Posted: Nov 24, 2012 1:11:28 AM

ok
stratlinetime
Champion Author Kalamazoo

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Message Posted: Nov 24, 2012 1:10:58 AM

Ok
olebufnav
Champion Author Omaha

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Message Posted: Nov 24, 2012 1:07:43 AM

Wonder how much tax money this study sucked to prove the obvious?
72_Monte
Champion Author Twin Cities

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Message Posted: Nov 24, 2012 1:06:52 AM


The housing market didn't need much help to implode.
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