-Why do people have have such visceral negative reactions to dropping house values?
Everyone wants to think they got a deal. Remember when the iphones came out. People were more than happy to fork over the $$$, but as soon as the price dropped they went balistic. This is for a stupid overhyped cellphone/pda. A house is still the biggest single purchase just about anyone makes EVER. Not suprising that we have the same reaction on the same scale of feeling having overpaid.
-Why is it that people have a hard time understanding this simple concept?
Simple, denial is a powerful copeing tool. One that we are very good at. “But, But, My property is Different!”
-Also remember Shiller said:”If we keep our incomes at the current level and home prices go down we are richer, we can buy more housing.”
‘Damnit, now all those damn_________(enter least favorite group of people, not necessary race, it can be age or income level or…….)_______ will start moving in and ruin the neighborhood.’
People think about themselves first, and would rather make 55k when everyone else makes 50k than make 105k when everyone else makes 110k. Wealth is all relative to those around you, and everyone wants to be the richest guy in the room (or atleast make everyone believe they are).
