[quote=sdrealtor]I always expected the massive gov’t intervention and never gave much thought to what would happen without because in my mind that was a fairy tale. I agree it is happening everywhere but dont agree on the level of distress being as high here as elsewhere. I see nicer cars in lower end areas and pretty much everyone I know around here is very fiscally conservative. Alot of the upgraded homes were purchased long ago at prices a fraction of where we are now. Pulling $50 to 100K out of homes like that still leave LTV’s under 50%. Whenever I look at loan balances on any given street around here I see far more limited levels of potential distress than you would want to beleive. Hard as it may be to beleive, the vast majority of your neighbors are just as responsible as you are.[/quote]
Yes, many people are just fine, but many are not. I only know what I’m told, and if we were to divide our friends by owner/renter status, our renter (usually bubble-sitting) friends are far better off, as a group, than our “owner” friends. It’s just anecdotal, but it’s what we see here in SD and also in LA (where we grew up).
BTW, this (surprisingly large) group of renter-friends are all extremely well-qualified, so I have no doubt that they (well-qualified buyers) exist. I just think the distress in the “homeowner” households is greater than you do. Just a different perspective though.
I also knew the PTB would try to bail out the housing market (borrowers and lenders), but I’ve always thought their actions would have gravely negative consequences in the long run. IMHO, they are only making the problem greater, and they are pushing the problems onto those who did not behave irresponsibly. They are going to take **everyone** down instead of just letting the guilty parties (borrowers and lenders) suffer the consequences of their actions.
