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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous] [quote]

Hah, no. QE bubble will result in either housing crash or mad mad inflation which deflates housing prices in nominal terms.  Honestly, I expect the inflation.[/quote]

Welcome back tin-foil hat wearing, QE man.

So, inflation will deflate housing prices in nominal terms (that's a quote!)? It doesn't take a professional economist (despite me being one) to tell you that you don't understand the words you're using. [/quote]

New Poster - I don't understand the words he's using either.  What does it mean?[/quote]

It's nonsense. Inflation means increasing nominal prices. (The "nominal" in that expression is due to the fact that a dollar today is worth a different amount than a dollar in 1980. Inflation means that a dollar tomorrow is worth less than a dollar today. It can buy less because prices have gone up. If all prices double, tomorrow's dollar is worth half of today's dollar.)

He says inflation will deflate housing prices in nominal terms. Assuming deflate==decrease, this makes no sense. Inflation raises the nominal prices of homes. [/quote]

True, houses will decrease in real terms as well. My point is that folks will have less and less disposable income because of rampant inflation which will push down housing prices no longer supported by the asset bubble.[/quote]

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