If You Dial 911, It May Be Long-Distance
One of the reasons this blog exists is because of stories like this, which indicate the bubble will collapse under it's own weight. "Of the 867 firefighters covered by the study, 207 live in Montgomery, while 208 call Frederick County home."
"The numbers are even worse than they appear, county officials said. 'If you look at the 24 percent who live in the county, I think you will find a lot of them live with their parents.'"
"John J. Sparks, president of the firefighters association, said basic math is causing most of his members to live as much as two hours' drive from their fire stations."
"The county's security suffers if its emergency workers live too far away to get to work quickly during a catastrophic event. 'They really can't afford to live in the county they work in. The prices are outrageous and they continue to go through the roof.'"
7 Comments:
I dont see the problem. Just start paying the fireman more and they'll be able to afford to live closer to the fires.
Besides, nobody ever said anyone had a "right" to live close to their jobs.
Hi anonymous,
If that happened, that would be exactly how high house prices feed into inflation. If that started to happen, then inflation would really start to take off. High inflation, high oil prices . . . 1978 all over again.
I agree that affordability is driving home prices upward due to historically low interest rates.
The Fed announces on Tuesday. I hope they remove "measured" from their stupid statements and announce that inflation will be fought at all costs. I'd love to see 50 bps, but what are the chances ? Zero.
A ton of houses are going to go on the market when interest rates move up.
The markets go up, they go down, then up, then down and so on. Sometimes they go higher than other times, and sometimes lower, Usually they take longer to go higher than they do to go lower.
Thats my take on it.
If money is the root of all evil, then debt is the all powerful fertilizer. Stay away from the fertilizer.
what year was it, 1994? when greenspan dropped interest rates with less than 2 minutes until the options triple expiration happened..
the dow went up 300 points in 60 seconds, and several large banks made billions in a split second- because as payment for bailing out LTCM, they were given the heads up about the interest rate change. they were able to buy up billions of dollars worth of options about to expire worthless for literally pennies.
and the rest, is history.
So, anon 4:48, are you sayin that you think they may go the other way.
I don't think so, this time, but maybe no change. The Fed can't figure out whether to fight inflation, or deflation. They are both happening at the same time.
In the Bay Area, this has been the case since the 1980's. Cops and firefighters live in towns like Vacaville and Fairfield, 50 miles north of San Francisco.
If another big earthquake occurs (like 1989) and knocks out a bridge, they'll be little emergency personnel within the city to control the chaos. it's probably worse now than 1989, the cops and firefighter probably live in Tracy and Modesto!
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