Former…
I don’t think that there will be a repeat anytime soon. Without stated income and 100% financing the world will never see the housing foolishness repeated at the same level. This will be a lost decade.
With one hand the govt is talking about modifying mortgage payments down to 31% of income YET with the other hand they are allowing new borrowers to be approved for 50%+ of income.
Potential new prospects to have payments lowered in the future to 31% of income to keep the Ponzi scheme going.
For several years I have equated home buyers to those who bought tech stocks all the way down after the bubble burst 10 years ago. They figured if a stock had been $1000 it must be cheap at $800, then $700, then $600, then $500, some on the way to $2.00.
It wasn’t based on reality or profits, but solely on what the price had been at the peak of the bubble. No earnings and some had no sales, just a vision of delusion.
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS
