[quote=SD Realtor]Sorry but I do not believe that my sdge bill, or my water bill, or my food bill has only gone up by a mild 1 or 2%. Check the price of sugar and cotton. Check the price of orange juice.
Also, even before the mideast crisis the cost of oil was well above 2% what it was last year.
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While CAR and I do not agree on alot of things, and while I am one of those naughty investors depriving the county of precious inventory, we do agree on some basics. We both do not believe (I think) that being told that the solutions put forth during the crisis were the only way to avert financial disaster. That there could have been more well thought out ways to get past the difficult periods. I cannot speak for CAR and I am certainly not the fatalist that Arraya is, however I do share the opinion that as long as the govt keeps telling us how they saved the world, many people will believe it, cheer for it, and go happily on believing that was the best way to do it and rubber stamping future similar behavior.[/quote]
FWIW, the flipping you’ve done by buying at auctions is NOT what I’ve been complaining about. I’d prefer the banks take them back and bring them to market, but that’s another issue…
The flipping I have a problem with is when “investors” buy homes that might need some more structural and/or cosmetic work, but aren’t priced right for long-term **owner-occupiers** who want to do the job right, and who want to buy at a price that reflects the work and inconvenience they will have to deal with to bring the house to good condition (not lipstick on a pig).
These flippers dress the pigs up, lipstick and all, while covering up the REAL problems, then they put them on the market for far more than they’re worth and sell them to 3.5% FHA buyers with wide eyes and no sense. These “investors” are buying up all of the inventory that would be suitable for the more prudent, long-term buyers who want to do their own work.
I will also add that the Fed has encouraged this type of behavior because savers, after being punished for almost a decade, have lost their patience, and are looking for any way to make a few bucks. The whole thing sucks, IMHO.
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As to the rest of your post, as you know, we are very much in agreement.
