Federal Reserve: No recovery without housing market recovery

RenovationMan

Thrugelmir wrote: »

It also has a variable price. That is effected by a number of factors.

More importantly though the source, i.e. a cow is an asset.

If a cow recovers from Foot & Mouth disease, does its value increase?

DervProf

ILW wrote: »

So it is possible to have a recovery in the housing market with static or even falling prices. Just depends on who are buying and selling and why. An EA would say the market is recovering based on volume as that is how they earn their money.

And I'm sure that any of the millions of people who's work relies on people moving house would say that a recovery in the property market does not mean that prices have to rise, just more properties to change hands. Every time someone moves house, lots of people in various trades will often be employed.

Simply associating "recovery" with price rises is a very short sighted, and predictable attitude. Yes, with increased transaction numbers, there will probably be prices increases, but one can happen without the other.

HAMISH_MCTAVISH

Thrugelmir wrote: »

the source, i.e. a cow is an asset.

Interestingly enough, a cow is indeed an asset.

But only until it's slaughtered and turned into consumable goods, i.e., an assortment of steaks and mince.

ILW

HAMISH_MCTAVISH wrote: »

Interestingly enough, a cow is indeed an asset.

But only until it's slaughtered and turned into consumable goods, i.e., an assortment of steaks and mince.

If the meat is frozen and held by a wholesaler, it is an asset.

gingeralan

ILW wrote: »

If the meat is frozen and held by a wholesaler, it is an asset.

Without getting too technical it is always an asset, it is a non current asset when it's a cow as you are expecting to receive economic benefit is in a different period to the one you currently hold it in. and once it's been slaughtered it becomes a current asset as you expect to receive economic benefit in the same period, if that makes sense:-).

Even once it had been purchased by the end user it is still a current asset as it does have a resale value should the current owner decide to realise this

RenovationMan

Pigs are one of the few animals on the farm where you only release its value once it is slaughtered, hence the piggy bank (which you used to have smash open to get at the cash inside, before stoppers came into fashion).

Cows give milk, sheep give wool, hens/ducks/geese give eggs, etc.

gingeralan

RenovationMan wrote: »

Pigs are one of the few animals on the farm where you only release its value once it is slaughtered, hence the piggy bank (which you used to have smash open to get at the cash inside, before stoppers came into fashion).

Cows give milk, sheep give wool, hens/ducks/geese give eggs, etc.

The cow still remains a non current asset, the milk is a separate entity which would be considered a current asset.

RenovationMan

gingeralan wrote: »

The cow still remains a non current asset, the milk is a separate entity which would be considered a current asset.

You cannot produce the milk without the cow; the milk has a symbiotic relationship with the cow and this duality ensures that the cow is a current asset and a conjoined entity with the milk.

ILW

RenovationMan wrote: »

You cannot produce the milk without the cow; the milk has a symbiotic relationship with the cow and this duality ensures that the cow is a current asset and a conjoined entity with the milk.

I was going to say that.

Wobblydeb

If it is a pet cow, does that make it a liability?