FHA warning~

[spdrun]

The human race will survive a LOOOOONG time with one child per couple. This being said, I’m assuming you can comfortably afford your 0.8 baths per human. And were able to afford them when you bought them.

If you’re single, this begs the question of (if you’re buying a family-sized house), why not buy a duplex? You can live in one apt, keep the other one rented while you’re single, then take over the second apartment as your family grows.

And perhaps re-duplex it when the kids move out.

[The-Shoveler]

There has not been a pandemic in long time.
Not saying it’s going to happen, but you never know.

Still waiting for that big asteroid to hit in the pacific, or that volcano off Africa to collapses.

[The-Shoveler]

Or This, I mean honestly What could go wrong?

DARPA Wants Computers That Fuse With Higher Human Brain Function

“In the never-ending quest to get computers to process, really understand and actually reason, scientists at Defense Advanced Research Projects Agency want to look more deeply into how computers can mimic a key portion of our brain. The military’s advanced research group recently put out a call, or Request For information, on how it could develop systems that go beyond machine learning, Bayesian techniques, and graphical technology to solve ‘extraordinarily difficult recognition problems in real-time.'”

[moneymaker]

Why limit a computer to the level of human thought? Why not create them to be perfect! That might answer the question of who made god. Perhaps created by an imperfect race to be perfect. Is it possible? i believe so

[SK in CV]

[quote=moneymaker]Why limit a computer to the level of human thought? Why not create them to be perfect! That might answer the question of who made god. Perhaps created by an imperfect race to be perfect. Is it possible? i believe so[/quote]

Dave, I’m afraid I can’t do that.

[ucodegen]

[quote=The-Shoveler]Well it was not every year but there were quite a few because you were getting promotions as well as cost of living raises (based on the cost to BUY a house by the way).

My wages easily doubled every 5 years from 1973 to 1990. My first new car in 1976 was worth about what I paid for when I paid it off in 1979.[/quote] Apply rule of 72… approx increase would be 14.4% not 30% to match that rate of increase. 30% would mean doubling every 3 years not 5.

[quote=SK in CV][quote=moneymaker]Why limit a computer to the level of human thought? Why not create them to be perfect! That might answer the question of who made god. Perhaps created by an imperfect race to be perfect. Is it possible? i believe so[/quote]

Dave, I’m afraid I can’t do that.[/quote]
Hummm.. nice reference!! And of course a disaster caused by political types f.. w… l…. c…. n…….. (don’t want to give away the ref, yet)

[moneymaker]

Since were on the subject of math. Zillow says my place just went up $10,800 in the last 30 days. If I were to add up all the increases since I’ve been checking out Zillow, my place would make me a millionaire, perhaps several times over. Any how who am I to argue, that is unless the gov wants me to start paying taxes on a home worth over a million dollars.

[The-Shoveler]

It was NOT every year but I remember quite a few.

Average U.S.A. home price went from 29K in 1973 to about 125K in 1990.

California home prices went up quite a bit higher in price as did California wages.

I think you would have had to live it.

[The-Shoveler]

Anyway, something to think about if we ever start seeing wage inflation north of 8% again.

[all]

[quote=SK in CV][quote=moneymaker]Why limit a computer to the level of human thought? Why not create them to be perfect! That might answer the question of who made god. Perhaps created by an imperfect race to be perfect. Is it possible? i believe so[/quote]

Dave, I’m afraid I can’t do that.[/quote]

But are you sorry?

[livinincali]

[quote=The-Shoveler]Average U.S.A. home price went from 29K in 1973 to about 125K in 1990.
[/quote]

That’s not what this chart says. Seems more like 100K was the average home price in 1990 and it didn’t break 125K until 1999-2000

[The-Shoveler]

Try the US Gov census.

http://www.census.gov/const/uspricemon.pdf

But I think this is missing the point,

It is the strangeness of the lack of wage inflation since 1990.

[carlsbadworker]

But couldn’t the FHA borrowers just refinance after LTV drops below 78% to conventional loan? What’s the big deal?

And I am actually confused why the FHA does this as well. I always thought it is a ponzi game. So what are they going to do if there are no new applications (new money) going in? Ask for the government bailout if the existing customers failed to pay?

[spdrun]

Perhaps this is a back-door attempt to wind down FHA loans entirely.

[livinincali]

[quote=The-Shoveler]Try the US Gov census.

http://www.census.gov/const/uspricemon.pdf

But I think this is missing the point,

It is the strangeness of the lack of wage inflation since 1990.[/quote]

That’s for new homes only. Which is a minority of the overall home sales.

That was my point we didn’t need wage inflation because people we’re perfectly comfortable expanding debt and leverage in a falling rate environment. Home prices could continue to go up without the expansion in wages because the monthly payment fell with the lower rates.

So the question is what happens when rates go up. If wages continue to experience low inflation then home prices will fall. If wages do experience the inflation you seem to think is a solution then you would expect rates to increase even faster. Of course if the rates expand at a rate greater than wages then home prices still fall. It’s going to be a negative feedback loop that will trap people in homes that are purchased now. They won’t be able to get that monthly payment again and they won’t be able to sell at a reasonable profit until they pay down a lot of the debt. We had falling rates as a trend for 30 years. We had a positive feedback loop to expand debt into that environment. When that changes assets that are bought and sold with leverage will suffer.

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