I am not an econ wiz at all, but to me it seems easy to see that something has to change. Since it won’t be wages, (maybe I’m going to get a 20k raise? That probably still wont’ be enough) it has to be something else.
To act like this is normal is absurd. People were flocking all over the place to buy housing, like wood is a scarce commodity and house building will forever be stopped by the year 2006. Greed and stupidity ran rampant across the board. People not caring because they qualified for the loan and we’ll take care of it in the future. Well the future is almost here. Don’t act like people were making calculated decisions because it was far from calculated.
Look at the charts, not gradual price increases, obscene price increases. Even GM is feeling the pinch from the crazy real estate market. Sub prime lenders closing their doors, bailout programs starting to emerge. The wave is now on the horizon. I’m sitting in the lineup looking out.. turning my board to the shore getting ready to start paddling to catch the big wave.
I don’t know the percentage of change, but it’s impossible for people to think it’s going to change just a little bit. When dual income no children white collar families cannot buy a place without buying a gun to live there. Something has to change.
Sling mud all you want. Bitter, pessimistic, whatever. I know that a lot on this board looked at the loans, and stated that it is crazy to put yourself in that position. It’s called using your brain, too bad you are sitting on yours.
