Thursday, November 02, 2006

Bakersfield will now be called Pluto from this point forward!

Fed's Fisher: Housing Bust Complicates Fed's Task

Dallas Fed President Richard W. Fisher spoke today in New York: Confessions of a Data Dependent :

In retrospect, [in 2002 and 2003] the real fed funds rate turned out to be lower than what was deemed appropriate at the time and was held lower longer that it should have been. In this case, poor data led to a policy action that amplified speculative activity in the housing and other markets. Today, as anybody not from the former planet of Pluto knows, the housing market is undergoing a substantial correction and inflicting real costs to millions of homeowners across the country. It is complicating the task of achieving our monetary
objective of creating the conditions for sustainable non-inflationary growth.


So these clowns admit they F'd up and kept rates WAY TOO LOW for WAY TOO LONG! Too late to act now and prevent the coming disaster. Time to break out the mops and pails and get ready for the biggest clean up job in history!

Meanwhile back on the planet PLUTO. The Bakersfield Californian has a story out claiming, for the N'th time we are "Different".

Prices might dip next year, but Bakersfield will still have a lot going for it -- a growing population, affordability and a self-sufficient economy, Launer said.

"Developers are anticipating a resurgence in the market in Bakersfield," he said

That may be because builders are biding their time until the market picks back up, Launer said.

"Developers want to be ready," he said. "They want to be able to hit the market in stride


incessant_din said...

"Of course, we know that, as with any central bank, the hypothetical Central Bank of Texas would have the power to debase the burrito by printing too much of it or by maladministering the central bank's franchise"

What a silly statement. Even with bad burritos, you could not make enough for burritos lose value to me. You can live in your house, but it won't feed you. Burritos are different.

As for Bakersfield, why would you want to bring L.A. or San Jose to a flat, hot, inland valley? Funny thing is, I actually appreciate the quirky, bucolic Central Valley. I miss that. I think I'll have to go to the Banta Inn this weekend to remind myself what was good about it, in the form of a linguica sandwich. Maybe a drive through Buttonwillow, or a trip to Hilmar...

smoggiebakersfield said...

What the hell is so self sufficient about the Bakersfield economy. This is complete nonsense.

My next door neighbor, that is a real estate agent has been locked in her house for two days now. Today, a process server knocked on my door, asking if the agent was home or not.

Everybody in this area bought in late 05' early 06'. This is burned out Pluto!!

Rob Dawg said...

Dammit, I want a perp walk. If we can't get the big cheese then how about a few reporters from the BC?

Anyway, Barkersfield is not a self sufficient economy, at these levels. When Bakersfield was self sufficient houses were cheap, jobs of all types were available, and costs were low.