4plexowner, I agree with you that speculators is a better word to describe these people.
You have a point also, Rustico. But the real issue is the hubris on the part of “investors” — a hubris that permeated a big section of society. What happens to all the “investors” when the market crashes? These people serve as an illustration of what will happen to many more folks — folks who don’t have the net-worth to weather a protracted downturn.
On the issue of psychology, it’s obvious that this family hasn’t really learned their lesson. Somehow, they still believe you can make $100,000 without batting and eye — not with their loosing housing but with other properties. In my mind, the market will not improve until the common people stop thinking that real estate is the easy road to riches.
