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December 31, 2010 at 6:54 AM #647661December 31, 2010 at 8:42 AM #646570irondocParticipant
In retrospect, we stretched a bit, but not by much. At the time of our purchase, our household net income was ~$14k/month. Our monthly mortgage obligation is $4600/month. So at the time of our purchase, we were paying about 33% of our post-tax income. My wife had the higher salary, so we are now at ~$6200 month income. Obviously, not a sustainable situation. I anticipate the value of our house has dropped another 10% since we purchased.
I don’t expect anyone to cry for us, but just wanted to make the point that not everyone has “greed” reasons for wanting home values to rise.
December 31, 2010 at 8:42 AM #646642irondocParticipantIn retrospect, we stretched a bit, but not by much. At the time of our purchase, our household net income was ~$14k/month. Our monthly mortgage obligation is $4600/month. So at the time of our purchase, we were paying about 33% of our post-tax income. My wife had the higher salary, so we are now at ~$6200 month income. Obviously, not a sustainable situation. I anticipate the value of our house has dropped another 10% since we purchased.
I don’t expect anyone to cry for us, but just wanted to make the point that not everyone has “greed” reasons for wanting home values to rise.
December 31, 2010 at 8:42 AM #647229irondocParticipantIn retrospect, we stretched a bit, but not by much. At the time of our purchase, our household net income was ~$14k/month. Our monthly mortgage obligation is $4600/month. So at the time of our purchase, we were paying about 33% of our post-tax income. My wife had the higher salary, so we are now at ~$6200 month income. Obviously, not a sustainable situation. I anticipate the value of our house has dropped another 10% since we purchased.
I don’t expect anyone to cry for us, but just wanted to make the point that not everyone has “greed” reasons for wanting home values to rise.
December 31, 2010 at 8:42 AM #647365irondocParticipantIn retrospect, we stretched a bit, but not by much. At the time of our purchase, our household net income was ~$14k/month. Our monthly mortgage obligation is $4600/month. So at the time of our purchase, we were paying about 33% of our post-tax income. My wife had the higher salary, so we are now at ~$6200 month income. Obviously, not a sustainable situation. I anticipate the value of our house has dropped another 10% since we purchased.
I don’t expect anyone to cry for us, but just wanted to make the point that not everyone has “greed” reasons for wanting home values to rise.
December 31, 2010 at 8:42 AM #647691irondocParticipantIn retrospect, we stretched a bit, but not by much. At the time of our purchase, our household net income was ~$14k/month. Our monthly mortgage obligation is $4600/month. So at the time of our purchase, we were paying about 33% of our post-tax income. My wife had the higher salary, so we are now at ~$6200 month income. Obviously, not a sustainable situation. I anticipate the value of our house has dropped another 10% since we purchased.
I don’t expect anyone to cry for us, but just wanted to make the point that not everyone has “greed” reasons for wanting home values to rise.
December 31, 2010 at 9:15 AM #646575briansd1Guest[quote=flu] In about 25 years the U.S. will declare bankruptcy. However, don’t worry about it. Either the U.S. will start a war with everyone else, or the the rest of the world will be forced to write it off. And hence, since no one else really wants to go to war with a country with 400x stockpile of warheads,missiles, etc, the world will write off the U.S. debt, and the U.S. will start over with a clean slate. Just like how loan mods are being done over and over again right now.
[/quote]The USA definitely has a trump card that is the military. We will have to charge for “protection”.
There will be a conference and the world powers will come to an agreement. Maybe certain countries will contribute to a world security fund to protect against “terrorism”.
But beyond that, I don’t think that there will be war for the following reasons:
– American power, economic and military, relative (it’s all relative) to the rest of the world in decreasing. A house in Guatemala is now the same price as a house in Riverside.
– We are in post-colonial world and colonialism has been rejected. Building wealth is now about creating peaceful markets of consumers. Look at Iraq, it was all about oil; but did America win? Or will the Chinese get the oil contracts with Iraq?
We paid for the war, but we won’t get the benefits. But we own Iraq because we broke it.
– American corporations are no longer American. They are world corporations that generate 1/2 of their revenues and profits overseas.
Th Chinese (unlike Japan) have been very good at welcoming American corporations. GM now sell more cars in China than in USA. Intel, Proctor & Gamble, etc. are now as much Chinese as they are American.
– We live in a globalized world. The new middle-class are those who have the skills to live and work in any country. Global mobility is the key to the future, just like mobility within America was key to prospering in America in the last 60 years.
Transfer of technology is quick and easy.
– China doesn’t need to be richer (per capita) than America. It only needs to become the biggest market for corporations with more consumers. The corporations will protect their market.
Overall, globalization is good and more equitable to the people of the world.
Generally speaking, the people who will feel the pain hardest are White Americans who have no education. They had the good life just because they were American (and European) citizens. They now have to compete on a global basis.
Blacks and Hispanics are used to poverty already so they won’t really see the change.
The real Americans such as Joe the Plumber will suffer and deservedly so. They are voting for policies that keep them dumb, and they will live to regret it (if they smarten enough to see the light).
BTW, it’s not a bad idea to write down the debts of your clients to keep them addicted and consuming your stuff. Isn’t that how the Brits sold opium?
December 31, 2010 at 9:15 AM #646647briansd1Guest[quote=flu] In about 25 years the U.S. will declare bankruptcy. However, don’t worry about it. Either the U.S. will start a war with everyone else, or the the rest of the world will be forced to write it off. And hence, since no one else really wants to go to war with a country with 400x stockpile of warheads,missiles, etc, the world will write off the U.S. debt, and the U.S. will start over with a clean slate. Just like how loan mods are being done over and over again right now.
[/quote]The USA definitely has a trump card that is the military. We will have to charge for “protection”.
There will be a conference and the world powers will come to an agreement. Maybe certain countries will contribute to a world security fund to protect against “terrorism”.
But beyond that, I don’t think that there will be war for the following reasons:
– American power, economic and military, relative (it’s all relative) to the rest of the world in decreasing. A house in Guatemala is now the same price as a house in Riverside.
– We are in post-colonial world and colonialism has been rejected. Building wealth is now about creating peaceful markets of consumers. Look at Iraq, it was all about oil; but did America win? Or will the Chinese get the oil contracts with Iraq?
We paid for the war, but we won’t get the benefits. But we own Iraq because we broke it.
– American corporations are no longer American. They are world corporations that generate 1/2 of their revenues and profits overseas.
Th Chinese (unlike Japan) have been very good at welcoming American corporations. GM now sell more cars in China than in USA. Intel, Proctor & Gamble, etc. are now as much Chinese as they are American.
– We live in a globalized world. The new middle-class are those who have the skills to live and work in any country. Global mobility is the key to the future, just like mobility within America was key to prospering in America in the last 60 years.
Transfer of technology is quick and easy.
– China doesn’t need to be richer (per capita) than America. It only needs to become the biggest market for corporations with more consumers. The corporations will protect their market.
Overall, globalization is good and more equitable to the people of the world.
Generally speaking, the people who will feel the pain hardest are White Americans who have no education. They had the good life just because they were American (and European) citizens. They now have to compete on a global basis.
Blacks and Hispanics are used to poverty already so they won’t really see the change.
The real Americans such as Joe the Plumber will suffer and deservedly so. They are voting for policies that keep them dumb, and they will live to regret it (if they smarten enough to see the light).
BTW, it’s not a bad idea to write down the debts of your clients to keep them addicted and consuming your stuff. Isn’t that how the Brits sold opium?
December 31, 2010 at 9:15 AM #647234briansd1Guest[quote=flu] In about 25 years the U.S. will declare bankruptcy. However, don’t worry about it. Either the U.S. will start a war with everyone else, or the the rest of the world will be forced to write it off. And hence, since no one else really wants to go to war with a country with 400x stockpile of warheads,missiles, etc, the world will write off the U.S. debt, and the U.S. will start over with a clean slate. Just like how loan mods are being done over and over again right now.
[/quote]The USA definitely has a trump card that is the military. We will have to charge for “protection”.
There will be a conference and the world powers will come to an agreement. Maybe certain countries will contribute to a world security fund to protect against “terrorism”.
But beyond that, I don’t think that there will be war for the following reasons:
– American power, economic and military, relative (it’s all relative) to the rest of the world in decreasing. A house in Guatemala is now the same price as a house in Riverside.
– We are in post-colonial world and colonialism has been rejected. Building wealth is now about creating peaceful markets of consumers. Look at Iraq, it was all about oil; but did America win? Or will the Chinese get the oil contracts with Iraq?
We paid for the war, but we won’t get the benefits. But we own Iraq because we broke it.
– American corporations are no longer American. They are world corporations that generate 1/2 of their revenues and profits overseas.
Th Chinese (unlike Japan) have been very good at welcoming American corporations. GM now sell more cars in China than in USA. Intel, Proctor & Gamble, etc. are now as much Chinese as they are American.
– We live in a globalized world. The new middle-class are those who have the skills to live and work in any country. Global mobility is the key to the future, just like mobility within America was key to prospering in America in the last 60 years.
Transfer of technology is quick and easy.
– China doesn’t need to be richer (per capita) than America. It only needs to become the biggest market for corporations with more consumers. The corporations will protect their market.
Overall, globalization is good and more equitable to the people of the world.
Generally speaking, the people who will feel the pain hardest are White Americans who have no education. They had the good life just because they were American (and European) citizens. They now have to compete on a global basis.
Blacks and Hispanics are used to poverty already so they won’t really see the change.
The real Americans such as Joe the Plumber will suffer and deservedly so. They are voting for policies that keep them dumb, and they will live to regret it (if they smarten enough to see the light).
BTW, it’s not a bad idea to write down the debts of your clients to keep them addicted and consuming your stuff. Isn’t that how the Brits sold opium?
December 31, 2010 at 9:15 AM #647371briansd1Guest[quote=flu] In about 25 years the U.S. will declare bankruptcy. However, don’t worry about it. Either the U.S. will start a war with everyone else, or the the rest of the world will be forced to write it off. And hence, since no one else really wants to go to war with a country with 400x stockpile of warheads,missiles, etc, the world will write off the U.S. debt, and the U.S. will start over with a clean slate. Just like how loan mods are being done over and over again right now.
[/quote]The USA definitely has a trump card that is the military. We will have to charge for “protection”.
There will be a conference and the world powers will come to an agreement. Maybe certain countries will contribute to a world security fund to protect against “terrorism”.
But beyond that, I don’t think that there will be war for the following reasons:
– American power, economic and military, relative (it’s all relative) to the rest of the world in decreasing. A house in Guatemala is now the same price as a house in Riverside.
– We are in post-colonial world and colonialism has been rejected. Building wealth is now about creating peaceful markets of consumers. Look at Iraq, it was all about oil; but did America win? Or will the Chinese get the oil contracts with Iraq?
We paid for the war, but we won’t get the benefits. But we own Iraq because we broke it.
– American corporations are no longer American. They are world corporations that generate 1/2 of their revenues and profits overseas.
Th Chinese (unlike Japan) have been very good at welcoming American corporations. GM now sell more cars in China than in USA. Intel, Proctor & Gamble, etc. are now as much Chinese as they are American.
– We live in a globalized world. The new middle-class are those who have the skills to live and work in any country. Global mobility is the key to the future, just like mobility within America was key to prospering in America in the last 60 years.
Transfer of technology is quick and easy.
– China doesn’t need to be richer (per capita) than America. It only needs to become the biggest market for corporations with more consumers. The corporations will protect their market.
Overall, globalization is good and more equitable to the people of the world.
Generally speaking, the people who will feel the pain hardest are White Americans who have no education. They had the good life just because they were American (and European) citizens. They now have to compete on a global basis.
Blacks and Hispanics are used to poverty already so they won’t really see the change.
The real Americans such as Joe the Plumber will suffer and deservedly so. They are voting for policies that keep them dumb, and they will live to regret it (if they smarten enough to see the light).
BTW, it’s not a bad idea to write down the debts of your clients to keep them addicted and consuming your stuff. Isn’t that how the Brits sold opium?
December 31, 2010 at 9:15 AM #647696briansd1Guest[quote=flu] In about 25 years the U.S. will declare bankruptcy. However, don’t worry about it. Either the U.S. will start a war with everyone else, or the the rest of the world will be forced to write it off. And hence, since no one else really wants to go to war with a country with 400x stockpile of warheads,missiles, etc, the world will write off the U.S. debt, and the U.S. will start over with a clean slate. Just like how loan mods are being done over and over again right now.
[/quote]The USA definitely has a trump card that is the military. We will have to charge for “protection”.
There will be a conference and the world powers will come to an agreement. Maybe certain countries will contribute to a world security fund to protect against “terrorism”.
But beyond that, I don’t think that there will be war for the following reasons:
– American power, economic and military, relative (it’s all relative) to the rest of the world in decreasing. A house in Guatemala is now the same price as a house in Riverside.
– We are in post-colonial world and colonialism has been rejected. Building wealth is now about creating peaceful markets of consumers. Look at Iraq, it was all about oil; but did America win? Or will the Chinese get the oil contracts with Iraq?
We paid for the war, but we won’t get the benefits. But we own Iraq because we broke it.
– American corporations are no longer American. They are world corporations that generate 1/2 of their revenues and profits overseas.
Th Chinese (unlike Japan) have been very good at welcoming American corporations. GM now sell more cars in China than in USA. Intel, Proctor & Gamble, etc. are now as much Chinese as they are American.
– We live in a globalized world. The new middle-class are those who have the skills to live and work in any country. Global mobility is the key to the future, just like mobility within America was key to prospering in America in the last 60 years.
Transfer of technology is quick and easy.
– China doesn’t need to be richer (per capita) than America. It only needs to become the biggest market for corporations with more consumers. The corporations will protect their market.
Overall, globalization is good and more equitable to the people of the world.
Generally speaking, the people who will feel the pain hardest are White Americans who have no education. They had the good life just because they were American (and European) citizens. They now have to compete on a global basis.
Blacks and Hispanics are used to poverty already so they won’t really see the change.
The real Americans such as Joe the Plumber will suffer and deservedly so. They are voting for policies that keep them dumb, and they will live to regret it (if they smarten enough to see the light).
BTW, it’s not a bad idea to write down the debts of your clients to keep them addicted and consuming your stuff. Isn’t that how the Brits sold opium?
December 31, 2010 at 10:01 AM #646595JazzmanParticipantI think half of it is seasonal. If you look at past years there’s nearly always a tail off towards the end of the year. But these are quite large drops and if you remember these are three month averages, there’s some pain in there somewhere.
Looks like sentiments for depreciating home prices are as strong as ever, and coupled with the media attention this is getting, it will feed into deflation, as sideliners take stock and pull back again. Even a 0.25% decline a month on a $800k home is worth holding out for.
CA real estate is still over-priced, and buyers will vote with their check books. Counter arguments are counter productive, as they are perceived as a threadbare mantra of the pre-internet epoch. Best just go with the flow, and people with trust again.
December 31, 2010 at 10:01 AM #646666JazzmanParticipantI think half of it is seasonal. If you look at past years there’s nearly always a tail off towards the end of the year. But these are quite large drops and if you remember these are three month averages, there’s some pain in there somewhere.
Looks like sentiments for depreciating home prices are as strong as ever, and coupled with the media attention this is getting, it will feed into deflation, as sideliners take stock and pull back again. Even a 0.25% decline a month on a $800k home is worth holding out for.
CA real estate is still over-priced, and buyers will vote with their check books. Counter arguments are counter productive, as they are perceived as a threadbare mantra of the pre-internet epoch. Best just go with the flow, and people with trust again.
December 31, 2010 at 10:01 AM #647253JazzmanParticipantI think half of it is seasonal. If you look at past years there’s nearly always a tail off towards the end of the year. But these are quite large drops and if you remember these are three month averages, there’s some pain in there somewhere.
Looks like sentiments for depreciating home prices are as strong as ever, and coupled with the media attention this is getting, it will feed into deflation, as sideliners take stock and pull back again. Even a 0.25% decline a month on a $800k home is worth holding out for.
CA real estate is still over-priced, and buyers will vote with their check books. Counter arguments are counter productive, as they are perceived as a threadbare mantra of the pre-internet epoch. Best just go with the flow, and people with trust again.
December 31, 2010 at 10:01 AM #647390JazzmanParticipantI think half of it is seasonal. If you look at past years there’s nearly always a tail off towards the end of the year. But these are quite large drops and if you remember these are three month averages, there’s some pain in there somewhere.
Looks like sentiments for depreciating home prices are as strong as ever, and coupled with the media attention this is getting, it will feed into deflation, as sideliners take stock and pull back again. Even a 0.25% decline a month on a $800k home is worth holding out for.
CA real estate is still over-priced, and buyers will vote with their check books. Counter arguments are counter productive, as they are perceived as a threadbare mantra of the pre-internet epoch. Best just go with the flow, and people with trust again.
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