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A Change In The Western Culture As We Know It?

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1K views 8 replies 4 participants last post by  telepariah 
#1 ·
Remember the old adage that your car will lose its value the moment you drive it off the car lot? On February 6, 2012, the Wall Street Journal reported:
The average price tag on previously owned vehicles is on track to rise 1.8% in 2012, with much of that increase expected in the second half of the year, according to the National Automobile Dealers Association. It would mark the third-consecutive year that used-car prices—already running at or near record highs—will have risen. Prices jumped 3% in 2011 from the prior year.
If you have been looking for a good used car, this is no surprise. Buying a used vehicle that is 1-5 years old with 50-85 thousand miles will cost you an arm and a leg.

On the flip side, do you remember that everyone always said invest in real property as an investment? Between the late 60’s and late 70s there was such an increase in homes appreciating that during most of the 80’s interest rates went into double digits. I know that was not the main reason, but it was a contributing fact. Now the demand for rental homes is on the increase driving rent prices up. This is occurring in spite of historically low interest rates. The record foreclosures and depreciating home values have made home ownership undesirable, creating the buzz word “under-water” mortgages. Homes are not depreciating in value.

Another economic report came out in January 2012, forecasting employees will begin making an exodus due to health issues from working extended hours and not receiving pay increases in the past 5-10 years, while they take on more work due to employers not hiring.

Is this the beginning of the end for Western Culture as we know it? The plight of what once was in the process of going topsy-turvy? Is this what the Mayans predicted in not necessarily the world would end, but things would end as we know it? Stay tuned……
 
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#2 ·
Is this the beginning of the end for Western Culture as we know it? The plight of what once was in the process of going topsy-turvy? Is this what the Mayans predicted in not necessarily the world would end, but things would end as we know it? Stay tuned……
No. It's a recession.
 
#3 ·
^^^We have been through recessions. In fact, I can't remember too many times except for the 90s that we were not in recession. How many times can you remember where used cars appreciated in value where real property depreciated during the same period?^^^
 
#4 ·
It's simple supply and demand:

Fewer new cars are being produced and purchased, so fewer used cars are being traded in.
People are holding on to their cars longer. This decreases the supply of "used" cars, which in turn increases their value.

Home prices are declining. They were over-inflated to begin with, and in a depressed economy, fewer people can afford to buy. This increases the supply. Prices fall.

Because less people can buy, more must rent. More demand. This drives the cost of a rental up.
 
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#6 ·
Is this the beginning of the end for Western Culture as we know it? The plight of what once was in the process of going topsy-turvy? Is this what the Mayans predicted in not necessarily the world would end, but things would end as we know it? Stay tuned……
Simple? Please show me what year this has ever occurred in our history.
Your argument is illogical. Even if it never has occured doesn't mean that it is an indicator of something ominous.

Please show me how this is the beginning of the end for Western Culture as we know it.
 
#7 ·
The mere act of both being at depressed levels: the early 1990s recession. Real estate. Cars. Part of a study for the before 1995 stuff (you have to look at the end.


MsBossyPants is right, there's a reasonable supply/demand explanation for the particular problem, and that this has been an unusual recession goes without saying, but looking at the car price index graph (the 1995 one), a rise in used car prices is a good thing. It means people are buying cars generally, reducing supply. The cheaper ones are first to go, which means used car prices are a leading indicator.
 
#9 ·
I am one of those who may be about to leave the workforce with illnesses brought on in part by the stress of my job and ever increasing expectations for productivity with no pay raises. Actually, I got one pay raise of 1.5% in 11 years. My house has not depreciated, but I live in a very desirable location. But I don't see any reason to believe that western culture is about to change in such a significant way. I do think it needs to change to something that is far less focused on consumption and status and conflict with the rest of the world, but I don't see that happening... not yet.
 
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