Shiller on housing: Using the D word

[HLS]

The big boys have already said that they will do whatever it takes to clean up the aftermath of the party.
Think about Times Square on New Years Day. The party was fun, but what a mess to clean up.

Even if they lower rates to 0%, (which won’t happen)
Joe6pack still owes $500K on a house worth $350 today.

The 100% financing that they bought with is no longer available. The pool of potential buyers has disappeared from the horizon, like cockroaches that scramble when the lights go on. They are nowhere in sight.

The house is unsaleable for more than 65% of what they owe.
It’s only a matter of time until walking away becomes the only option, regardless of what the DC clan is saying about wanting to help homeowners save their piece of the American dream.

Like a bottle of milk well past its expiration date, the American dream has soured for many, and will never taste the same. You can’t restore the flavor after it has curdled.

[patientrenter]

HLS, what happens if a newly empowered govt agency offers to lend $600K to anyone who wants to pay that much for that $350K house, on which the current owner owes $500K?

Patient renter in OC

[patientrenter]

HLS, what happens if a newly empowered govt agency offers to lend $600K to anyone who wants to pay that much for that $350K house, on which the current owner owes $500K?

Patient renter in OC

[patientrenter]

HLS, what happens if a newly empowered govt agency offers to lend $600K to anyone who wants to pay that much for that $350K house, on which the current owner owes $500K?

Patient renter in OC

[patientrenter]

HLS, what happens if a newly empowered govt agency offers to lend $600K to anyone who wants to pay that much for that $350K house, on which the current owner owes $500K?

Patient renter in OC

[patientrenter]

HLS, what happens if a newly empowered govt agency offers to lend $600K to anyone who wants to pay that much for that $350K house, on which the current owner owes $500K?

Patient renter in OC

[HLS]

They already tried that in 2002-2006. It didn’t work, and it won’t happen again.

Someone/somewhere has to pony up cash to float that instrument, and there aren’t people standing in line to buy MBS these days, regardless of bond ratings.

The party is over, the easy girls have all left.

It’s time to pay the piper. Lots of people are going to have a hangover in the morning, and their headache isn’t going away anytime soon, in fact it’s going to get worse.

[HLS]

They already tried that in 2002-2006. It didn’t work, and it won’t happen again.

Someone/somewhere has to pony up cash to float that instrument, and there aren’t people standing in line to buy MBS these days, regardless of bond ratings.

The party is over, the easy girls have all left.

It’s time to pay the piper. Lots of people are going to have a hangover in the morning, and their headache isn’t going away anytime soon, in fact it’s going to get worse.

[HLS]

They already tried that in 2002-2006. It didn’t work, and it won’t happen again.

Someone/somewhere has to pony up cash to float that instrument, and there aren’t people standing in line to buy MBS these days, regardless of bond ratings.

The party is over, the easy girls have all left.

It’s time to pay the piper. Lots of people are going to have a hangover in the morning, and their headache isn’t going away anytime soon, in fact it’s going to get worse.

[HLS]

They already tried that in 2002-2006. It didn’t work, and it won’t happen again.

Someone/somewhere has to pony up cash to float that instrument, and there aren’t people standing in line to buy MBS these days, regardless of bond ratings.

The party is over, the easy girls have all left.

It’s time to pay the piper. Lots of people are going to have a hangover in the morning, and their headache isn’t going away anytime soon, in fact it’s going to get worse.

[HLS]

They already tried that in 2002-2006. It didn’t work, and it won’t happen again.

Someone/somewhere has to pony up cash to float that instrument, and there aren’t people standing in line to buy MBS these days, regardless of bond ratings.

The party is over, the easy girls have all left.

It’s time to pay the piper. Lots of people are going to have a hangover in the morning, and their headache isn’t going away anytime soon, in fact it’s going to get worse.

[Anonymous]

What are the chances of the above happening? Please somebody tell me close to 0. I’m sick of the hair-brained schemes, one right after the other. The above sounds like something out of the “twilight zone”. When will the government back off and just let this thing play out on its own??

I live on small culdesac in Murrieta of about 8 houses. Two are bank owned, another is in default (renter just moved out because owner is being foreclosed on). Another one was for sale for a ridiculous price and is now inactive (don’t know what happened with it). Anyway, this street looks like a mini ghost town. Sign of the times, of course.

I’m ready for this train to crash into the wall!

[Anonymous]

What are the chances of the above happening? Please somebody tell me close to 0. I’m sick of the hair-brained schemes, one right after the other. The above sounds like something out of the “twilight zone”. When will the government back off and just let this thing play out on its own??

I live on small culdesac in Murrieta of about 8 houses. Two are bank owned, another is in default (renter just moved out because owner is being foreclosed on). Another one was for sale for a ridiculous price and is now inactive (don’t know what happened with it). Anyway, this street looks like a mini ghost town. Sign of the times, of course.

I’m ready for this train to crash into the wall!

[Anonymous]

What are the chances of the above happening? Please somebody tell me close to 0. I’m sick of the hair-brained schemes, one right after the other. The above sounds like something out of the “twilight zone”. When will the government back off and just let this thing play out on its own??

I live on small culdesac in Murrieta of about 8 houses. Two are bank owned, another is in default (renter just moved out because owner is being foreclosed on). Another one was for sale for a ridiculous price and is now inactive (don’t know what happened with it). Anyway, this street looks like a mini ghost town. Sign of the times, of course.

I’m ready for this train to crash into the wall!

[Anonymous]

What are the chances of the above happening? Please somebody tell me close to 0. I’m sick of the hair-brained schemes, one right after the other. The above sounds like something out of the “twilight zone”. When will the government back off and just let this thing play out on its own??

I live on small culdesac in Murrieta of about 8 houses. Two are bank owned, another is in default (renter just moved out because owner is being foreclosed on). Another one was for sale for a ridiculous price and is now inactive (don’t know what happened with it). Anyway, this street looks like a mini ghost town. Sign of the times, of course.

I’m ready for this train to crash into the wall!

[Author]

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