Forbes: Housing Woes Hit High End Too

[Arraya]

It always brings out the best in the board when a newbie comes in says something ignorant. Solid entertainment with some great insight!

Thanks

[falcon_eyes]

mgubnyc1 wrote “The problem wasn’t the nurses or the idiot’s it’s the lenders!!”

FYI, the irresponsible predatory mortgage lenders companies have been punished (going bankrupt or acquired by bigger companies) now that the banks have stopped buying their crapshit MBS and CDO poof.

With regards to the nurses and upside down homeowners, they can just go complain to the FHA, ACORN entities and start requesting the help funds … waiting along with the rest of Katrina bailout’ natural disaster help.

Honestly, I don’t think the upside down homeowners are more important than the Katrina victims. At least you guys are just homeless and can sleep just fine at your rental apartment compare to the Katrina people who got drowned and probably died in excess of water consumption.

[falcon_eyes]

mgubnyc1 wrote “The problem wasn’t the nurses or the idiot’s it’s the lenders!!”

FYI, the irresponsible predatory mortgage lenders companies have been punished (going bankrupt or acquired by bigger companies) now that the banks have stopped buying their crapshit MBS and CDO poof.

With regards to the nurses and upside down homeowners, they can just go complain to the FHA, ACORN entities and start requesting the help funds … waiting along with the rest of Katrina bailout’ natural disaster help.

Honestly, I don’t think the upside down homeowners are more important than the Katrina victims. At least you guys are just homeless and can sleep just fine at your rental apartment compare to the Katrina people who got drowned and probably died in excess of water consumption.

[falcon_eyes]

mgubnyc1 wrote “The problem wasn’t the nurses or the idiot’s it’s the lenders!!”

FYI, the irresponsible predatory mortgage lenders companies have been punished (going bankrupt or acquired by bigger companies) now that the banks have stopped buying their crapshit MBS and CDO poof.

With regards to the nurses and upside down homeowners, they can just go complain to the FHA, ACORN entities and start requesting the help funds … waiting along with the rest of Katrina bailout’ natural disaster help.

Honestly, I don’t think the upside down homeowners are more important than the Katrina victims. At least you guys are just homeless and can sleep just fine at your rental apartment compare to the Katrina people who got drowned and probably died in excess of water consumption.

[stansd]

On the wealth gap: I’m more and more convinced that what has increased this gap is simply the liquidity and leverage boom in recent years. You have to have money to make money, and so when the stock and real estate markets boom, it’s the wealthy that benefit.

Think of the inverse, though…as things unwind, you will see a narrowing of the wealth gap. Yes, this will hit the poor harder than the rich because losing $1 when you have only $10 means you have less to eat, while losing $300K when you have a million means you drive a 3 series instead of a 5 series.

The increase in the wealth gap hasn’t had a hugely negative impact on the poor-wages have been stagnant, not declining dramatically. Similarly, it’s correction won’t benefit them to a large degree. It’s the size of the pie along with how much of it you own that matters. Focusing only on what % of the pie you possess lands you in the land of the communist manifesto and populism.

Stan

[stansd]

On the wealth gap: I’m more and more convinced that what has increased this gap is simply the liquidity and leverage boom in recent years. You have to have money to make money, and so when the stock and real estate markets boom, it’s the wealthy that benefit.

Think of the inverse, though…as things unwind, you will see a narrowing of the wealth gap. Yes, this will hit the poor harder than the rich because losing $1 when you have only $10 means you have less to eat, while losing $300K when you have a million means you drive a 3 series instead of a 5 series.

The increase in the wealth gap hasn’t had a hugely negative impact on the poor-wages have been stagnant, not declining dramatically. Similarly, it’s correction won’t benefit them to a large degree. It’s the size of the pie along with how much of it you own that matters. Focusing only on what % of the pie you possess lands you in the land of the communist manifesto and populism.

Stan

[stansd]

On the wealth gap: I’m more and more convinced that what has increased this gap is simply the liquidity and leverage boom in recent years. You have to have money to make money, and so when the stock and real estate markets boom, it’s the wealthy that benefit.

Think of the inverse, though…as things unwind, you will see a narrowing of the wealth gap. Yes, this will hit the poor harder than the rich because losing $1 when you have only $10 means you have less to eat, while losing $300K when you have a million means you drive a 3 series instead of a 5 series.

The increase in the wealth gap hasn’t had a hugely negative impact on the poor-wages have been stagnant, not declining dramatically. Similarly, it’s correction won’t benefit them to a large degree. It’s the size of the pie along with how much of it you own that matters. Focusing only on what % of the pie you possess lands you in the land of the communist manifesto and populism.

Stan

[cyphire]

I don’t get it…. Why would prices only go to 2002 levels? This makes no sense to me. I hate to be the gloom and doomer – but I don’t think that 2002 prices are realistic.

Look at the Case-Shiller Graph.

http://graphics8.nytimes.com/images/2006/08/26/weekinreview/27leon_graph2.large.gif

I think that prices will go down to about 1998 levels. Remember, there were people bailing on SD home prices in the early 2000’s. There were articles about how crazy prices were. We bought in Carmel Valley in 2000. Paid 810K for a house which we sold for 1.4M in 04. Now a neighbor has his house up for 1.7M. 810K was crazy for that house in 2000. Forget about 1.2 in 2002. Do you really think that prices which went up by 15-20% each year will then only fall back to 2002?

My house in CV was 450K in 1995. In 2000 it was 810K. Again remember, that we considered (and everyone else I knew) that 810K was a crazy large amount of money for that house.

I am AMAZED at the reluctance of people believing that they are in a bubble, even when it is bursting. I am amazed at how people believe that with 1-3% interest rates (2002?) that this is a normal part of the market. That house should be 700K… It will be 700K again. 2002 prices were still brutally above where they should have been.

First of all — DON’T believe the CRAP you are hearing in the papers and on TV. The “Experts” claim that prices will still fall be a few percent until 2008-9. Now some are saying 2010. These are the same experts which said that we would have a flat market this year (and recover by the end of 2007).

Scenario. People are incredibly afraid of real estate right now. Only idiots are buying houses now (getting that free kitchen and the right to own a mortgage!). This will continue as more and more fallout in the market happens. Do you really think that the market has fallen? It is just DEAD. Falling happens over time, just as rising prices do. It will go down and down. Equity will be DESTROYED. This will savage the economy. Prices will continue to fall to the affordability level.

Also realize that the Case-Shiller graph is the NATIONAL average…. Our graph would have a much higher amplitude tha n the national graph. Case shiller shows that through 2006 we were 200% growth…. In reality this boom has gone up almost 300%… There is NO reason that it couldn’t even go negative as the economy goes into a depression. If you think that this is impossible – just look at history…

I am not hoping for this, I am just afraid of this.

[cyphire]

I don’t get it…. Why would prices only go to 2002 levels? This makes no sense to me. I hate to be the gloom and doomer – but I don’t think that 2002 prices are realistic.

Look at the Case-Shiller Graph.

http://graphics8.nytimes.com/images/2006/08/26/weekinreview/27leon_graph2.large.gif

I think that prices will go down to about 1998 levels. Remember, there were people bailing on SD home prices in the early 2000’s. There were articles about how crazy prices were. We bought in Carmel Valley in 2000. Paid 810K for a house which we sold for 1.4M in 04. Now a neighbor has his house up for 1.7M. 810K was crazy for that house in 2000. Forget about 1.2 in 2002. Do you really think that prices which went up by 15-20% each year will then only fall back to 2002?

My house in CV was 450K in 1995. In 2000 it was 810K. Again remember, that we considered (and everyone else I knew) that 810K was a crazy large amount of money for that house.

I am AMAZED at the reluctance of people believing that they are in a bubble, even when it is bursting. I am amazed at how people believe that with 1-3% interest rates (2002?) that this is a normal part of the market. That house should be 700K… It will be 700K again. 2002 prices were still brutally above where they should have been.

First of all — DON’T believe the CRAP you are hearing in the papers and on TV. The “Experts” claim that prices will still fall be a few percent until 2008-9. Now some are saying 2010. These are the same experts which said that we would have a flat market this year (and recover by the end of 2007).

Scenario. People are incredibly afraid of real estate right now. Only idiots are buying houses now (getting that free kitchen and the right to own a mortgage!). This will continue as more and more fallout in the market happens. Do you really think that the market has fallen? It is just DEAD. Falling happens over time, just as rising prices do. It will go down and down. Equity will be DESTROYED. This will savage the economy. Prices will continue to fall to the affordability level.

Also realize that the Case-Shiller graph is the NATIONAL average…. Our graph would have a much higher amplitude tha n the national graph. Case shiller shows that through 2006 we were 200% growth…. In reality this boom has gone up almost 300%… There is NO reason that it couldn’t even go negative as the economy goes into a depression. If you think that this is impossible – just look at history…

I am not hoping for this, I am just afraid of this.

[cyphire]

I don’t get it…. Why would prices only go to 2002 levels? This makes no sense to me. I hate to be the gloom and doomer – but I don’t think that 2002 prices are realistic.

Look at the Case-Shiller Graph.

http://graphics8.nytimes.com/images/2006/08/26/weekinreview/27leon_graph2.large.gif

I think that prices will go down to about 1998 levels. Remember, there were people bailing on SD home prices in the early 2000’s. There were articles about how crazy prices were. We bought in Carmel Valley in 2000. Paid 810K for a house which we sold for 1.4M in 04. Now a neighbor has his house up for 1.7M. 810K was crazy for that house in 2000. Forget about 1.2 in 2002. Do you really think that prices which went up by 15-20% each year will then only fall back to 2002?

My house in CV was 450K in 1995. In 2000 it was 810K. Again remember, that we considered (and everyone else I knew) that 810K was a crazy large amount of money for that house.

I am AMAZED at the reluctance of people believing that they are in a bubble, even when it is bursting. I am amazed at how people believe that with 1-3% interest rates (2002?) that this is a normal part of the market. That house should be 700K… It will be 700K again. 2002 prices were still brutally above where they should have been.

First of all — DON’T believe the CRAP you are hearing in the papers and on TV. The “Experts” claim that prices will still fall be a few percent until 2008-9. Now some are saying 2010. These are the same experts which said that we would have a flat market this year (and recover by the end of 2007).

Scenario. People are incredibly afraid of real estate right now. Only idiots are buying houses now (getting that free kitchen and the right to own a mortgage!). This will continue as more and more fallout in the market happens. Do you really think that the market has fallen? It is just DEAD. Falling happens over time, just as rising prices do. It will go down and down. Equity will be DESTROYED. This will savage the economy. Prices will continue to fall to the affordability level.

Also realize that the Case-Shiller graph is the NATIONAL average…. Our graph would have a much higher amplitude tha n the national graph. Case shiller shows that through 2006 we were 200% growth…. In reality this boom has gone up almost 300%… There is NO reason that it couldn’t even go negative as the economy goes into a depression. If you think that this is impossible – just look at history…

I am not hoping for this, I am just afraid of this.

[stockstradr]

mgubnyc1 asks:

one thing I don’t understand about Piggington’s why is it everyone loves bad news?

Do my wife and I love reading “bad news” about falling home prices in America..

My answer, said with a *Jack Nicholson Grin*:

YOU’RE DAMN RIGHT I LOVE READING ABOUT REAL ESTATE PRICES GOING DOWN THE TOILET!

🙂

My wife and I bought a home we could afford, in San Diego. We then saw a real estate market go insane with speculation. We sold. Greedy friends made fun of us for selling, and gave us their unsolicited “advice” for years about how we are missing out on all the future appreciation, blah blah blah. Ahh, but that anticipated additional appreciation never came.

We practice fiscal responsibility. We don’t need bailouts, and don’t go begging US taxpayers for them either. Essentially by taking our half-million out of our home we bet that PRICES WILL FALL. We did it by selling and putting money in other investments.

To renters, news on falling home prices isn’t “bad news” but instead is GOOD NEWS, and we don’t apologize for that perspective.

I want home prices to fall. I want to see “blood in the streets” and homeowners stunned stupid at how much they have lost in equity.

NO APOLOGIES!
🙂

[stockstradr]

mgubnyc1 asks:

one thing I don’t understand about Piggington’s why is it everyone loves bad news?

Do my wife and I love reading “bad news” about falling home prices in America..

My answer, said with a *Jack Nicholson Grin*:

YOU’RE DAMN RIGHT I LOVE READING ABOUT REAL ESTATE PRICES GOING DOWN THE TOILET!

🙂

My wife and I bought a home we could afford, in San Diego. We then saw a real estate market go insane with speculation. We sold. Greedy friends made fun of us for selling, and gave us their unsolicited “advice” for years about how we are missing out on all the future appreciation, blah blah blah. Ahh, but that anticipated additional appreciation never came.

We practice fiscal responsibility. We don’t need bailouts, and don’t go begging US taxpayers for them either. Essentially by taking our half-million out of our home we bet that PRICES WILL FALL. We did it by selling and putting money in other investments.

To renters, news on falling home prices isn’t “bad news” but instead is GOOD NEWS, and we don’t apologize for that perspective.

I want home prices to fall. I want to see “blood in the streets” and homeowners stunned stupid at how much they have lost in equity.

NO APOLOGIES!
🙂

[stockstradr]

mgubnyc1 asks:

one thing I don’t understand about Piggington’s why is it everyone loves bad news?

Do my wife and I love reading “bad news” about falling home prices in America..

My answer, said with a *Jack Nicholson Grin*:

YOU’RE DAMN RIGHT I LOVE READING ABOUT REAL ESTATE PRICES GOING DOWN THE TOILET!

🙂

My wife and I bought a home we could afford, in San Diego. We then saw a real estate market go insane with speculation. We sold. Greedy friends made fun of us for selling, and gave us their unsolicited “advice” for years about how we are missing out on all the future appreciation, blah blah blah. Ahh, but that anticipated additional appreciation never came.

We practice fiscal responsibility. We don’t need bailouts, and don’t go begging US taxpayers for them either. Essentially by taking our half-million out of our home we bet that PRICES WILL FALL. We did it by selling and putting money in other investments.

To renters, news on falling home prices isn’t “bad news” but instead is GOOD NEWS, and we don’t apologize for that perspective.

I want home prices to fall. I want to see “blood in the streets” and homeowners stunned stupid at how much they have lost in equity.

NO APOLOGIES!
🙂

[NotCranky]

I am not sure if this is cruel or not but I want to put bumper stickers on my two modest cars that say. “Don’t laugh the house is paid for”. My better half won’t let me. I bet all the “pigs” would love it though.

Hint for the younger group: There used to be a bumper sticker that you would see on an old beater that said don’t laugh it’ paid for.

[NotCranky]

I am not sure if this is cruel or not but I want to put bumper stickers on my two modest cars that say. “Don’t laugh the house is paid for”. My better half won’t let me. I bet all the “pigs” would love it though.

Hint for the younger group: There used to be a bumper sticker that you would see on an old beater that said don’t laugh it’ paid for.

[Author]

Posts