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DR Horton Inc. Message Board

  • davenport47 davenport47 Sep 19, 2007 4:31 PM Flag

    China Freezes Prices

    What does anyone make of this? Just came out in The Financial Times:

    http://www.ft.com/cms/s/0/ff229506-666c-11dc-a218-0000779fd2ac.html

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    • China Government freezes prices on things they control. Not sure if that means the rest of the stuff gets to go up 'triple fast' to make up for the difference(like imports). Don't know.

      If my history is correct, I think our government froze our products, services and labor back in the great depression to hault inflation. Didn't work out every well! ;-)

      Interesting link, thanks.

      • 1 Reply to roh_home
      • Actually, you don't have to go that far back. Richard Nixon attempted this in the 1970's. That's when gas tripled 22 cents to 66 cents; food costs did the same thing, especially beef.

        When the price controls were lifted, things went really nuts. The ten year rate jumped from 5.7% in March 1970 to a peak of 15.32% in September of 1981. You can curse or thank Paul Volcker for getting a handle on inflation. Greenspan followed him in 1987. In January 1987, the ten year had dropped to 7.08%; that's probably before Greenspan.

        In the short term, it works great. In the long term, it's nothing but trouble. The longer the government keeps price controls in place, the worse it will get once they are lifted. If you are Chinese and want to hedge your bets, what do you buy? Gold.

    • It didn't work here for Tricky Dick, did it?

      W.

    • I think it is important and will get a lot of attention in the next few weeks. Think about it! Their inflation will be our inflation since we buy everything from them.

      Of course inflation is good for a country with $9 trillion in debt. High inflation will eventually make the debt seem manageable. Inflating our way out of our debt crisis is the only way we will be able to pay it. Of course, it is good for homeowners as houses become more expensive to build so property values rise. Everyone will want two homes as protection against inflation.

      Just pray we eventually get leaders in Washington who want to do good for the Nation. Not people who only want to get re-elected and advance their party issues.

      I do not own DHI. Not looking to buy it either. Just reviewing the message board to guage investor sentiment.

    • mr_warren_soros_einstein mr_warren_soros_einstein Sep 19, 2007 4:50 PM Flag

      "Qing Wang, of Morgan Stanley, said in Hong Kong: �As inflation has gotten worse, the government may have felt it had to toughen its stand.�"

      Jesus H. Christ! How fricking dumb are them Chinese folk? If they wanna get inflation under control, in fact, almost eliminate it completely, why the hell don't they just have their economic stats computed by the same analysts and economists that our government uses? Hell, look at us, we're in great shape!

 
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