Famed Columnist gives rotten mortgage advice

[sdrealtor]

I’m not here for ethics on this one. If the HELOC was taken out as the 20 on an 80/20 loan when he bought the place its a purchase money loan. If they foreclose on him they get nothing and have no recourse. He could stop paying the 2nd and may be able to negotiate a short pay settlement on the HELOC. A de facto loan mod/principal reduction if you will.

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[patientrenter]

The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).

[Allan from Fallbrook]

[quote=patientrenter]The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).[/quote]

PR: Not only has moral hazard been discarded by the Admin and the FED, but so has common sense and simple arithmetic. A quick read of the latest CBO assessment regarding spending and policies should chill your blood.

Of course, the Admin and the FED will discount it completely or try to undercut it with the usual doublespeak and sleight of hand, but we’re essentially continuing to advance a Ponzi scheme of completely epic proportions. It’s unsustainable and yet we continue blithely on, as though everything is fine. We’re doing at all levels of society and government.

Depression? What depression?

[Allan from Fallbrook]

[quote=patientrenter]The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).[/quote]

PR: Not only has moral hazard been discarded by the Admin and the FED, but so has common sense and simple arithmetic. A quick read of the latest CBO assessment regarding spending and policies should chill your blood.

Of course, the Admin and the FED will discount it completely or try to undercut it with the usual doublespeak and sleight of hand, but we’re essentially continuing to advance a Ponzi scheme of completely epic proportions. It’s unsustainable and yet we continue blithely on, as though everything is fine. We’re doing at all levels of society and government.

Depression? What depression?

[Allan from Fallbrook]

[quote=patientrenter]The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).[/quote]

PR: Not only has moral hazard been discarded by the Admin and the FED, but so has common sense and simple arithmetic. A quick read of the latest CBO assessment regarding spending and policies should chill your blood.

Of course, the Admin and the FED will discount it completely or try to undercut it with the usual doublespeak and sleight of hand, but we’re essentially continuing to advance a Ponzi scheme of completely epic proportions. It’s unsustainable and yet we continue blithely on, as though everything is fine. We’re doing at all levels of society and government.

Depression? What depression?

[Allan from Fallbrook]

[quote=patientrenter]The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).[/quote]

PR: Not only has moral hazard been discarded by the Admin and the FED, but so has common sense and simple arithmetic. A quick read of the latest CBO assessment regarding spending and policies should chill your blood.

Of course, the Admin and the FED will discount it completely or try to undercut it with the usual doublespeak and sleight of hand, but we’re essentially continuing to advance a Ponzi scheme of completely epic proportions. It’s unsustainable and yet we continue blithely on, as though everything is fine. We’re doing at all levels of society and government.

Depression? What depression?

[Allan from Fallbrook]

[quote=patientrenter]The great RE money machine will not do well unless people can write off large loans in this big downturn.

The whole process creates a nice illusion of wealth – RE prices rise and people pocket gains, then prices fall and people walk away and taxpayers pay their losses. No real wealth is created, but it is transferred, using taxes and inflation, from people who are not in RE and who have high incomes/savings, to those in RE (either as professionals or as investors).

Of course the WaPo advice is dumb. Moral hazard has been thrown out the window by our own government (Congress and Admin), and those who still worry about doing what is selfishly immoral, but legal, are being played for suckers. People are being encouraged to be suckers because it leaves more to be gained by the rest. (There are still a few people who are genuinely motivated by the morality or ethics of borrowing money and not repaying it, but their genuine concerns are being misused by the decisionmakers).[/quote]

PR: Not only has moral hazard been discarded by the Admin and the FED, but so has common sense and simple arithmetic. A quick read of the latest CBO assessment regarding spending and policies should chill your blood.

Of course, the Admin and the FED will discount it completely or try to undercut it with the usual doublespeak and sleight of hand, but we’re essentially continuing to advance a Ponzi scheme of completely epic proportions. It’s unsustainable and yet we continue blithely on, as though everything is fine. We’re doing at all levels of society and government.

Depression? What depression?

[equalizer]

[quote=temeculaguy]I see a very high horse and of course I have a step ladder so I’m gonna get on it. I’ll loan you my step ladder if you like.

This is not a stock play, this is not about getting a good deal on priceline for a hotel room. This is a debt that someone took, someone promised to pay and from what we can tell, they can afford to pay back. They should honor their debt, keep their promise, learn from the lesson and think twice next time. There are a few pieces of advice, a few promises in life that you are supposed to keep, not because they make a profit, but becuase karma is a bitch and integrity cannot be re aquired. Monogomy is like that too. Lets say that you are in a monogomous relationship, that you promised to only have sex with one person, you are supposed to keep that promise, nothing can make you do it but yourself. If you are involved in a terrible hunting accident and your genitalia is removed, then through something beyond your control you will not be able to fullfill your obligation but you didn’t break the promise (that is like losing your job). But if Beyonce hits on you in a bar, asks you to go home with her, well, it’s decision time. Are you a man of your word?

The following commandments were never published in any religious text, I made them up, but they are far more relevent today.

1. Pay your debts, pay your tab, pay your own way.

2. Don’t steal, good deals are permitted and encouraged.

3. Don’t tell someone you love them unless you mean it, but if you do, tell them often and show it.

4. Take care of your children and at some point, your parents, even when it’s inconvenient.

5. Drink good wine, eat good food, but avoid sugar.

That’s it, sometimes you win, sometimes you lose, sometimes you have to lick your wounds, stand up and walk out of the room like a man, even if you limp a little.[/quote]
That’s great advice.
Most people don’t have courage, or wherewithal, etc, to follow the advice. Those SF liberals can complain about Chinese goods because they can afford the American made products at 5 times the price. (Viking, etc)

Does Trump or my other mentors keep their honor and pay debts or do they use business loss provisions of BK, etc? Now you may want to take Trump’s assets to pay his speculative RE plays and more power to you if you can stop my mentors. Otherwise, it’s just capitalism my friend.

Do we really want people to spend all of their disposable income on their mortgage, HELOC, etc and nothing left for kids diapers, La Jolla Country day tuition? You guys know my answer, I’m the Yankee capitalist and I say again poor people get out of CA.

[equalizer]

[quote=temeculaguy]I see a very high horse and of course I have a step ladder so I’m gonna get on it. I’ll loan you my step ladder if you like.

This is not a stock play, this is not about getting a good deal on priceline for a hotel room. This is a debt that someone took, someone promised to pay and from what we can tell, they can afford to pay back. They should honor their debt, keep their promise, learn from the lesson and think twice next time. There are a few pieces of advice, a few promises in life that you are supposed to keep, not because they make a profit, but becuase karma is a bitch and integrity cannot be re aquired. Monogomy is like that too. Lets say that you are in a monogomous relationship, that you promised to only have sex with one person, you are supposed to keep that promise, nothing can make you do it but yourself. If you are involved in a terrible hunting accident and your genitalia is removed, then through something beyond your control you will not be able to fullfill your obligation but you didn’t break the promise (that is like losing your job). But if Beyonce hits on you in a bar, asks you to go home with her, well, it’s decision time. Are you a man of your word?

The following commandments were never published in any religious text, I made them up, but they are far more relevent today.

1. Pay your debts, pay your tab, pay your own way.

2. Don’t steal, good deals are permitted and encouraged.

3. Don’t tell someone you love them unless you mean it, but if you do, tell them often and show it.

4. Take care of your children and at some point, your parents, even when it’s inconvenient.

5. Drink good wine, eat good food, but avoid sugar.

That’s it, sometimes you win, sometimes you lose, sometimes you have to lick your wounds, stand up and walk out of the room like a man, even if you limp a little.[/quote]
That’s great advice.
Most people don’t have courage, or wherewithal, etc, to follow the advice. Those SF liberals can complain about Chinese goods because they can afford the American made products at 5 times the price. (Viking, etc)

Does Trump or my other mentors keep their honor and pay debts or do they use business loss provisions of BK, etc? Now you may want to take Trump’s assets to pay his speculative RE plays and more power to you if you can stop my mentors. Otherwise, it’s just capitalism my friend.

Do we really want people to spend all of their disposable income on their mortgage, HELOC, etc and nothing left for kids diapers, La Jolla Country day tuition? You guys know my answer, I’m the Yankee capitalist and I say again poor people get out of CA.

[equalizer]

[quote=temeculaguy]I see a very high horse and of course I have a step ladder so I’m gonna get on it. I’ll loan you my step ladder if you like.

This is not a stock play, this is not about getting a good deal on priceline for a hotel room. This is a debt that someone took, someone promised to pay and from what we can tell, they can afford to pay back. They should honor their debt, keep their promise, learn from the lesson and think twice next time. There are a few pieces of advice, a few promises in life that you are supposed to keep, not because they make a profit, but becuase karma is a bitch and integrity cannot be re aquired. Monogomy is like that too. Lets say that you are in a monogomous relationship, that you promised to only have sex with one person, you are supposed to keep that promise, nothing can make you do it but yourself. If you are involved in a terrible hunting accident and your genitalia is removed, then through something beyond your control you will not be able to fullfill your obligation but you didn’t break the promise (that is like losing your job). But if Beyonce hits on you in a bar, asks you to go home with her, well, it’s decision time. Are you a man of your word?

The following commandments were never published in any religious text, I made them up, but they are far more relevent today.

1. Pay your debts, pay your tab, pay your own way.

2. Don’t steal, good deals are permitted and encouraged.

3. Don’t tell someone you love them unless you mean it, but if you do, tell them often and show it.

4. Take care of your children and at some point, your parents, even when it’s inconvenient.

5. Drink good wine, eat good food, but avoid sugar.

That’s it, sometimes you win, sometimes you lose, sometimes you have to lick your wounds, stand up and walk out of the room like a man, even if you limp a little.[/quote]
That’s great advice.
Most people don’t have courage, or wherewithal, etc, to follow the advice. Those SF liberals can complain about Chinese goods because they can afford the American made products at 5 times the price. (Viking, etc)

Does Trump or my other mentors keep their honor and pay debts or do they use business loss provisions of BK, etc? Now you may want to take Trump’s assets to pay his speculative RE plays and more power to you if you can stop my mentors. Otherwise, it’s just capitalism my friend.

Do we really want people to spend all of their disposable income on their mortgage, HELOC, etc and nothing left for kids diapers, La Jolla Country day tuition? You guys know my answer, I’m the Yankee capitalist and I say again poor people get out of CA.

[equalizer]

[quote=temeculaguy]I see a very high horse and of course I have a step ladder so I’m gonna get on it. I’ll loan you my step ladder if you like.

This is not a stock play, this is not about getting a good deal on priceline for a hotel room. This is a debt that someone took, someone promised to pay and from what we can tell, they can afford to pay back. They should honor their debt, keep their promise, learn from the lesson and think twice next time. There are a few pieces of advice, a few promises in life that you are supposed to keep, not because they make a profit, but becuase karma is a bitch and integrity cannot be re aquired. Monogomy is like that too. Lets say that you are in a monogomous relationship, that you promised to only have sex with one person, you are supposed to keep that promise, nothing can make you do it but yourself. If you are involved in a terrible hunting accident and your genitalia is removed, then through something beyond your control you will not be able to fullfill your obligation but you didn’t break the promise (that is like losing your job). But if Beyonce hits on you in a bar, asks you to go home with her, well, it’s decision time. Are you a man of your word?

The following commandments were never published in any religious text, I made them up, but they are far more relevent today.

1. Pay your debts, pay your tab, pay your own way.

2. Don’t steal, good deals are permitted and encouraged.

3. Don’t tell someone you love them unless you mean it, but if you do, tell them often and show it.

4. Take care of your children and at some point, your parents, even when it’s inconvenient.

5. Drink good wine, eat good food, but avoid sugar.

That’s it, sometimes you win, sometimes you lose, sometimes you have to lick your wounds, stand up and walk out of the room like a man, even if you limp a little.[/quote]
That’s great advice.
Most people don’t have courage, or wherewithal, etc, to follow the advice. Those SF liberals can complain about Chinese goods because they can afford the American made products at 5 times the price. (Viking, etc)

Does Trump or my other mentors keep their honor and pay debts or do they use business loss provisions of BK, etc? Now you may want to take Trump’s assets to pay his speculative RE plays and more power to you if you can stop my mentors. Otherwise, it’s just capitalism my friend.

Do we really want people to spend all of their disposable income on their mortgage, HELOC, etc and nothing left for kids diapers, La Jolla Country day tuition? You guys know my answer, I’m the Yankee capitalist and I say again poor people get out of CA.

[Author]

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