We can look back at the loans originated in 2005-06 and conclude that now…It’s easy to say that now. Personally, I wouldn’t have invested based on 2003-04 loans either.
If you have been in OC very long, you remember the crisis of the county. The treasurer had invested in crappy bonds, looking for the yield. OC bonds were cut to junk. Even NYC was on the verge of BK before Giuliani.
Society has demanded more value for their money. Whether it’s buying inferior products for a cheaper price OR wanting higher yields on investments.
The sad/crazy/reality is that it’s STILL happening on Wall Street. Money flow into the markets have never been greater.
Millions of educated and not continue to “invest” because of the perception. It will take a true crash to cure a generation of this sheepish thinking, like it did in 1929.
Do you really think that the brightest and finest MBA’s and Wall Street geniuses didn’t KNOW that historically low interest rates combined with 100% STATED income financing
with the creaton of MBS in the 90’s was going to create a crisis at some point ?? It was brilliant manipulation.
You think they care who would ultimitely get hurt ?
$$ Millions $$ have been made by many. Some people think that they have done well making a few hundred grand in equity, and they have, but not because they are smart.
The guys that made millions in the same period are the smart ones.
I was involved in local real estate in the late 80’s and early 90’s. I saw what was going to happen the last few years with crystal clarity. I’m no genius. I got out.
See me post above. You have to accept that the “other” players control the market, not the sensible ones…
To address your comment above, I agree, but the fact is that buyer’s do not understand what they are buying!
I think that you know this. ‘Nuff said ?
