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kev374
ParticipantIrvineRenter, noticed that you posted the chart originally. Great find! That chart is pretty damn scary! I wish I had a crystal ball to look at the state of housing 5 years from now after all that carnage is worked through! Yikes!
ParticipantThese are not 100% LTV programs yeah?
ParticipantIt makes sense to me that as these countries rise and their citizens gain wealth, the pie will actual grow larger so that we can all eat more of it.
I doubt the average American will benefit from outsourcing and the new demand by the burgeoning middle class in China and India. The only ones that will become rich are the top tier execs of the American corporations and the investors. That is the true reason they are there, they want to establish the brands and reap in the profits.
However, the future is hard to predict. India has extremely poor infrastructure. I’ve been to Bangalore many times and know this first hand. It takes 2 hrs to go 10 miles and there are power cuts of 3-4hrs each day which require expensive alternative power sources. Just few weeks ago there were riots in Bangalore and our India SW development team could not work for 2 days causing downtime!! We also sometimes have issues that require immediate resolution when staff in India is sleeping, it has to be done here in the US to avoid business losses.
Another issue is severe wage inflation of 13-15% a year and heavy workforce attrition. When an employee leaves they take the business domain knowledge they have gained with them and someone else has to start from scratch, this is not good for a company.
While it is easy to offshore entry level software development functions, complex Business Analysis and architecture is not that easy to develop abroad. We live in a very dynamic environment where the business rules change fast, for many companies time to market has to be low for survival. Many companies are realizing this and therefore choosing to keep those functions in the US itself.
ParticipantThe problem with Software Engineering in India is that there is a tremendous shortage of good people just like anywhere else in the world. The good people in India are so in demand that they are just picked up immediately by the giants – Infosys, Wipro, TCS, Microsoft, Oracle etc. The smaller American companies don’t stand a chance, they have to hire the leftovers who tend to be inexperienced (6mos to 1yr) and with poor educational foundations.
India may be home to IIT, BiTs etc. which are really good schools but only a fraction go to these institutions. Most engineering curriculums are dated and the quality of teaching is substandard. Because of the boom there is such an urgency to churn out graduates in huge numbers that the quality takes a back seat. There is also the fact that many are attracted to this profession not due to true passion for developing software but rather because it’s lucrative.
India is experiencing what the US experienced during the .com era, where if you knew how to surf the web you got a $80-100k job!!
NASSCOM (the Indian equivalent of IEEE) recently released a report that stated that only 25% of Engineering grads per year are “employable” due to poor technical ability and also other soft skills. In my opinion, India will face huge hurdles in coming years due to a shortage of *useable* talent.
ParticipantBugs, I am referring to the future of our students. The enrollment in our Engineering schools is dwindling and for good reason. Our jobs are moving offshore and we are invaded with low wave H1bs (many of who will not hesitate to live 4 in a 1bdroom apt.). What do our students have to look forward to? Why would they spend a ton of money on the ever increasing cost of education if they know that they will graduate with heavy debt and bleak job prospects? I am in IT and I know that virtually entry level jobs have all been offshored or will be shortly so how are these students supposed to make a start?
Bush has supported cuts in Educational funding, increase of the H1b cap to satisfy his corporate cronies and provide them with an endless supply of cheap 3rd world labor, mindlessly emptied our coffers on this idiotic war and printed money to create this whole bubble fiasco!
Shame on the Bush administration!!!!! They have FAILED all of us.
Participantand we should realize that the Bush administration is to blame for selling out the future of this country.
Participantwell, all the corporate executives already made their millions now the common guy has to pay! This upcoming recession is going to be extremely painful. People will be walking away from their homes in droves, due to the zero down mortgages people have very little incentive to save their homes.
ParticipantCongress must aid subprime victims
On Tuesday, two top Democratic lawmakers said that they were mulling legislation to tighten subprime lending rules and aid borrowers now in distress.
The sense of entitlement is unbelievable. Now they are entitled to keep the house as well?
ParticipantYour example has no relevance to the discussion.
I was just making the point that not all renters are below the median income and all homeowners above the median like you’re making it out to be. There are plenty of homeowners who are way below the median income.
ParticipantSan Diegan I know plenty of folks who are single income households, make around 75k and own a median priced home. This was very possible just 6 years ago. It’s only now that this is not possible due to the income/home price ratio going completely out of wack.
Remember, there are many retired homeowners with little income who bought 20 or 30 yrs ago that equally skew the statistics in the other direction, for example my Aunt is 70years old, owns a home worth $800,000 in Laguna Hills but earns like 35k/yr from her retirement and benefits! so your math is of little value!
Participantwow, I just saw that. The crazy thing is that I feel Peter Schiff is right. We have been living on borrowed time for so many years and it just seems like we are at that critical juncture now. Yikes! Well, choose from 2 options: Hyperinflation or Deflation? Which poison do you want? 🙁
March 12, 2007 at 9:32 PM in reply to: Interesting Price increase in Carmel Valley MLS – 071009616 #47505Participantnothing unusual. There are always people that are under the effects of crack in full hallucination.
Participantcashman, incomes of 100k are not as common as you think. Per official statistics about 30% of households have incomes over that figure, let’s say 40% just for argument sake and taking into account incomes from entrepreneurs may be under-reported. Even so, most of those families are already homeowners and not creating demand for homes..a small percentage of those may be trade up buyers. However, trade up buyers are dependent on selling their existing homes to first time buyers who are typically in their late 20s/early 30s. Most in this age group do not have established careers to earn such a high income!
Secondly, a mortgage is not the only expense, most families have kids, car payments, vacations, kids college expenses, emergencies etc. that are very substantial. A family making 100k with other expenses combined is completely priced out of even the median home.
ParticipantI believe bad decisions should have consequences. These families should face these adversities and learn from them. They SHOULD lose their home and pay some price for their lapse in judgement. They will be more careful the next time around. I am opposed to just giving out handouts.
will show $3000 rims on Joe’s 2005 Truck and a 52″ flat panel LCD HDTV hung over the TV in the living room.
Tell me about it! I was watching this show on TV the other day about this 25 yr old girl who couldn’t afford her mortgage and was barely making ends meet and when they showed her living room there was a 50+” Plasma or LCD screen right there…just ridiculous!
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