Housing direction

[(former)FormerSanDiegan]

[quote=SD Attorney]Great article from 2005. I love Ms. Pearson’s arrogant attitude about housing. My have times changed…

[/quote]

I have to agree. When I saw this article it hit me like a 2×4 to the head. I opened the magazine to this article (page 78) and left it open on my shelf as a reminder. Every year or so, I notice it on the shelf and like to re-read it in current context.

As the sands of time turn the bubble into a faint memory and as the glimmering hopes of those profiled wilt to the same straw yellow of page 78, I plan to keep holding on to this article.
But, I am sure that sometime in the next decade or so, it will echo all too familiar once again.

[HLS]

Former…
I don’t think that there will be a repeat anytime soon. Without stated income and 100% financing the world will never see the housing foolishness repeated at the same level. This will be a lost decade.

With one hand the govt is talking about modifying mortgage payments down to 31% of income YET with the other hand they are allowing new borrowers to be approved for 50%+ of income.
Potential new prospects to have payments lowered in the future to 31% of income to keep the Ponzi scheme going.

For several years I have equated home buyers to those who bought tech stocks all the way down after the bubble burst 10 years ago. They figured if a stock had been $1000 it must be cheap at $800, then $700, then $600, then $500, some on the way to $2.00.

It wasn’t based on reality or profits, but solely on what the price had been at the peak of the bubble. No earnings and some had no sales, just a vision of delusion.

There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS

[HLS]

Former…
I don’t think that there will be a repeat anytime soon. Without stated income and 100% financing the world will never see the housing foolishness repeated at the same level. This will be a lost decade.

With one hand the govt is talking about modifying mortgage payments down to 31% of income YET with the other hand they are allowing new borrowers to be approved for 50%+ of income.
Potential new prospects to have payments lowered in the future to 31% of income to keep the Ponzi scheme going.

For several years I have equated home buyers to those who bought tech stocks all the way down after the bubble burst 10 years ago. They figured if a stock had been $1000 it must be cheap at $800, then $700, then $600, then $500, some on the way to $2.00.

It wasn’t based on reality or profits, but solely on what the price had been at the peak of the bubble. No earnings and some had no sales, just a vision of delusion.

There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS

[HLS]

Former…
I don’t think that there will be a repeat anytime soon. Without stated income and 100% financing the world will never see the housing foolishness repeated at the same level. This will be a lost decade.

With one hand the govt is talking about modifying mortgage payments down to 31% of income YET with the other hand they are allowing new borrowers to be approved for 50%+ of income.
Potential new prospects to have payments lowered in the future to 31% of income to keep the Ponzi scheme going.

For several years I have equated home buyers to those who bought tech stocks all the way down after the bubble burst 10 years ago. They figured if a stock had been $1000 it must be cheap at $800, then $700, then $600, then $500, some on the way to $2.00.

It wasn’t based on reality or profits, but solely on what the price had been at the peak of the bubble. No earnings and some had no sales, just a vision of delusion.

There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS

[HLS]

Former…
I don’t think that there will be a repeat anytime soon. Without stated income and 100% financing the world will never see the housing foolishness repeated at the same level. This will be a lost decade.

With one hand the govt is talking about modifying mortgage payments down to 31% of income YET with the other hand they are allowing new borrowers to be approved for 50%+ of income.
Potential new prospects to have payments lowered in the future to 31% of income to keep the Ponzi scheme going.

For several years I have equated home buyers to those who bought tech stocks all the way down after the bubble burst 10 years ago. They figured if a stock had been $1000 it must be cheap at $800, then $700, then $600, then $500, some on the way to $2.00.

It wasn’t based on reality or profits, but solely on what the price had been at the peak of the bubble. No earnings and some had no sales, just a vision of delusion.

There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS

[HLS]

Former…
I don’t think that there will be a repeat anytime soon. Without stated income and 100% financing the world will never see the housing foolishness repeated at the same level. This will be a lost decade.

With one hand the govt is talking about modifying mortgage payments down to 31% of income YET with the other hand they are allowing new borrowers to be approved for 50%+ of income.
Potential new prospects to have payments lowered in the future to 31% of income to keep the Ponzi scheme going.

For several years I have equated home buyers to those who bought tech stocks all the way down after the bubble burst 10 years ago. They figured if a stock had been $1000 it must be cheap at $800, then $700, then $600, then $500, some on the way to $2.00.

It wasn’t based on reality or profits, but solely on what the price had been at the peak of the bubble. No earnings and some had no sales, just a vision of delusion.

There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[(former)FormerSanDiegan]

HLS – We are about half way through a decade since the peak of the bubble in San Diego. The lost decade might actually be 15 years in this case, but I have faith in my fellow Califronia, who has proven incapable of avoiding speculative bubbles in real estate for generations.
Although I agree that the magnitude will not be the same as the bubble of the 2000’s, we will surely retest the relative values of the peaks in 1990 and 1979 sometime in the next 15 years.

[Fletch]

[quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…

[Fletch]

[quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…

[Fletch]

[quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…

[Fletch]

[quote=HLS]Former…
There are still people hanging on to what they bought at an inflated price but don’t want to sell because they don’t want to lose money. Sound familiar ?
Sadly for them, they don’t even know what the wash rule is and that the govt will share in their loss.
..HLS[/quote]

Can you elaborate what you mean by the govt sharing in their loss? I sold my house (primary residence) at a loss and could not find any way to deduct this…

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