That’s why they call it Capital-ism

[uncomfortably numb]

Interesting to note how the so-called free market in real estate operates. The institutions which control the market will allow the price to go up completely unfettered, but on the down-side, these same institutions, whose primary responsibility is to preserve capital at all costs, will lie, cheat, beg, borrow and steal, to serve their master. If there was anything even resembling a free market, the price of real estate would now be through the toilet well on its way to the septic tank.

[beanmaestro]

I’m not convinced anyone’s DOING anything to prevent RE prices from dropping. The politicians are talking a good game, but DOING nothing. The Fed is considering the effects on the economy, but holding rates steady. The banks/market are tightening lending standards, but only renegotiating loans when it’s in their interest.

My suspicion is that aside from banks waiving refinance fees and granting more forbearances, no one’s going to DO anything of consequence until prices drop another 10-15%, and then probably not until it’s too late

[beanmaestro]

I’m not convinced anyone’s DOING anything to prevent RE prices from dropping. The politicians are talking a good game, but DOING nothing. The Fed is considering the effects on the economy, but holding rates steady. The banks/market are tightening lending standards, but only renegotiating loans when it’s in their interest.

My suspicion is that aside from banks waiving refinance fees and granting more forbearances, no one’s going to DO anything of consequence until prices drop another 10-15%, and then probably not until it’s too late

[blahblahblah]

Privatize profit, publicize risk. That is the motto of the powers-that-be.

[blahblahblah]

Privatize profit, publicize risk. That is the motto of the powers-that-be.

[davelj]

I think that’s “Privatize profit, socialize risk,” but I know what you mean. Yup, that’s the M.O. of the government.

[davelj]

I think that’s “Privatize profit, socialize risk,” but I know what you mean. Yup, that’s the M.O. of the government.

[kewp]

“They aren’t making any more buyers!”

My prediction for the next big RE buzz-phrase.

[kewp]

“They aren’t making any more buyers!”

My prediction for the next big RE buzz-phrase.

[blahblahblah]

Yeah, that’s a better way to say it. But I don’t think it’s the government’s MO as much as it is the MO of big business. Government’s MO is just to grow and avoid responsibility.

We’re all screwed.

[blahblahblah]

Yeah, that’s a better way to say it. But I don’t think it’s the government’s MO as much as it is the MO of big business. Government’s MO is just to grow and avoid responsibility.

We’re all screwed.

[NotCranky]

Can the word mercenary describe an economic system or just murdering for money? I am looking for another word to describe the hostile element of our system, that seemingly co-exist with the two that are obvious in the mix capitalism and socialism.

[NotCranky]

Can the word mercenary describe an economic system or just murdering for money? I am looking for another word to describe the hostile element of our system, that seemingly co-exist with the two that are obvious in the mix capitalism and socialism.

[uncomfortably numb]

The point of the original post was to bring attention to the fact that the market is anything but free. Remember, ‘property’ is where the powers’ that be bury their treasure. It is completely in their interests to keep the price of property, especially real property, as high as practical. Of course, historically, the price of real estate has only gone up at the rate of inflation (what else could you ask for?), and the diversion from this mean is but a temporary blip, indicating a fairly obvious corruption within the system, but the advantages placing one’s wealth in real property are numerous. If you ‘own’ the land, then you control much of what happens on, by, through, underneath, and above it. It’s sort of like controlling the currency, but in real instead of virtual terms.

Right now you are watching the various institutions, especially the banks, and their lackeys, the appraisors, the RE agents, insurance people, all the way down the line, manipulating their little hearts out, but of course, in the end, the natural order of things wins out, much of the corruption is weeded out, and things return to “normal,” that is, getting screwed in a perfectly moral, legal, and acceptable way.

[uncomfortably numb]

The point of the original post was to bring attention to the fact that the market is anything but free. Remember, ‘property’ is where the powers’ that be bury their treasure. It is completely in their interests to keep the price of property, especially real property, as high as practical. Of course, historically, the price of real estate has only gone up at the rate of inflation (what else could you ask for?), and the diversion from this mean is but a temporary blip, indicating a fairly obvious corruption within the system, but the advantages placing one’s wealth in real property are numerous. If you ‘own’ the land, then you control much of what happens on, by, through, underneath, and above it. It’s sort of like controlling the currency, but in real instead of virtual terms.

Right now you are watching the various institutions, especially the banks, and their lackeys, the appraisors, the RE agents, insurance people, all the way down the line, manipulating their little hearts out, but of course, in the end, the natural order of things wins out, much of the corruption is weeded out, and things return to “normal,” that is, getting screwed in a perfectly moral, legal, and acceptable way.

[Author]

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