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pemeliza
Participant“The only thing I think is not on the table is stability.”
It is funny Nor because I have been thinking the same thing for some time now.
The problem with the “stability” thesis is that the “underwater” owners that are still holding on are going to jump one way or another depending on economic news over the next couple of months. If the economy takes another leg down look out below. This whole housing “recovery” seems very very fragile right now. The only thing that is going to keep these owners from walking is if they are convinced that the housing recovery of the last 10 months or so is going to continue.
Participant“The only thing I think is not on the table is stability.”
It is funny Nor because I have been thinking the same thing for some time now.
The problem with the “stability” thesis is that the “underwater” owners that are still holding on are going to jump one way or another depending on economic news over the next couple of months. If the economy takes another leg down look out below. This whole housing “recovery” seems very very fragile right now. The only thing that is going to keep these owners from walking is if they are convinced that the housing recovery of the last 10 months or so is going to continue.
ParticipantThe strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.
ParticipantThe strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.
ParticipantThe strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.
ParticipantThe strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.
ParticipantThe strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.
ParticipantWow it seems like you timed the market perfectly and are still disgruntled.
ParticipantWow it seems like you timed the market perfectly and are still disgruntled.
ParticipantWow it seems like you timed the market perfectly and are still disgruntled.
ParticipantWow it seems like you timed the market perfectly and are still disgruntled.
ParticipantWow it seems like you timed the market perfectly and are still disgruntled.
ParticipantThe “artificial” forces (especially those brought on in 2003) magnified the “normal” market forces. This is why the FED is culpable. Perhaps they are correct that the housing bubble could not have been completely prevented but they did not have to throw gas on the flames.
The extreme government involvement in housing looks like a grand experiment that went horribly wrong. It is clear at this point that we all would have been better off if this “experiment” never took place. However, at this point it is not clear to me how the ties can be severed without destroying the entire economy.
It is ironic that the one thing the government could have done to prevent this bubble from spiraling out of control (regulating the mortgage market) was the one thing they decided to keep their hands out of.
ParticipantThe “artificial” forces (especially those brought on in 2003) magnified the “normal” market forces. This is why the FED is culpable. Perhaps they are correct that the housing bubble could not have been completely prevented but they did not have to throw gas on the flames.
The extreme government involvement in housing looks like a grand experiment that went horribly wrong. It is clear at this point that we all would have been better off if this “experiment” never took place. However, at this point it is not clear to me how the ties can be severed without destroying the entire economy.
It is ironic that the one thing the government could have done to prevent this bubble from spiraling out of control (regulating the mortgage market) was the one thing they decided to keep their hands out of.
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