[PerryChase]

Ozzie, why would the MBS ratings even be a problem if, as you claim, the homeowners are still paying their mortgages? And how then do you explain the record foreclosures?

Do you think that foreclosures will only be small ripple in the economy?

I don’t know about the rest of the country, but San Diego will definitely have a painful recession.

[PerryChase]

Ex-SD. You make too much sense. An empty house costs a lot of money in holding costs and rental income not received.

I have a friend (not close) who is selling his house. Spent money repainting it and laying hardward floors. He bought in 2003, moved to LA, and rented out the house. The house does not cash flow so that’s why he’s selling.

The house is sitting on the market bleeding money everyday. He complains about the market. So I say “maybe, the market will pickup in the Spring.” If he’s listening to me, he’ll catch the falling knife. But what is one to say in polite conversation? (good thing I have Piggington as an outlet :))

[PerryChase]

Ex-SD. You make too much sense. An empty house costs a lot of money in holding costs and rental income not received.

I have a friend (not close) who is selling his house. Spent money repainting it and laying hardward floors. He bought in 2003, moved to LA, and rented out the house. The house does not cash flow so that’s why he’s selling.

The house is sitting on the market bleeding money everyday. He complains about the market. So I say “maybe, the market will pickup in the Spring.” If he’s listening to me, he’ll catch the falling knife. But what is one to say in polite conversation? (good thing I have Piggington as an outlet :))

[PerryChase]

Ex-SD. You make too much sense. An empty house costs a lot of money in holding costs and rental income not received.

I have a friend (not close) who is selling his house. Spent money repainting it and laying hardward floors. He bought in 2003, moved to LA, and rented out the house. The house does not cash flow so that’s why he’s selling.

The house is sitting on the market bleeding money everyday. He complains about the market. So I say “maybe, the market will pickup in the Spring.” If he’s listening to me, he’ll catch the falling knife. But what is one to say in polite conversation? (good thing I have Piggington as an outlet :))

[PerryChase]

rb_engineer, a recession is staring us in the face. The warning signs are here. I guess you won’t accept it until it’s here.

Combine a liquidity squeeze with a recession and you get house prices falling like a rock.

——–

I don’t that Walmart does layaways anymore. I think they used to do that when not everyone had a credit card.

——–

I don’t think that the plunge protection team is able to work its magic anymore.

[PerryChase]

rb_engineer, a recession is staring us in the face. The warning signs are here. I guess you won’t accept it until it’s here.

Combine a liquidity squeeze with a recession and you get house prices falling like a rock.

——–

I don’t that Walmart does layaways anymore. I think they used to do that when not everyone had a credit card.

——–

I don’t think that the plunge protection team is able to work its magic anymore.

[PerryChase]

rb_engineer, a recession is staring us in the face. The warning signs are here. I guess you won’t accept it until it’s here.

Combine a liquidity squeeze with a recession and you get house prices falling like a rock.

——–

I don’t that Walmart does layaways anymore. I think they used to do that when not everyone had a credit card.

——–

I don’t think that the plunge protection team is able to work its magic anymore.

[PerryChase]

now, if your mommy and daddy were the bank, then sure. they could give you more time, they could float you some, they could even forgive you of the whole thing. everything would be peachy and no one would freak out about anything. the percentage of people who have mommy and daddy supporting them, however, is very small. very very small. miniscule. maybe that's why bush has no clue how to deal with the economy…

That's a good one Drunkle.

[PerryChase]

now, if your mommy and daddy were the bank, then sure. they could give you more time, they could float you some, they could even forgive you of the whole thing. everything would be peachy and no one would freak out about anything. the percentage of people who have mommy and daddy supporting them, however, is very small. very very small. miniscule. maybe that's why bush has no clue how to deal with the economy…

That's a good one Drunkle.

[PerryChase]

now, if your mommy and daddy were the bank, then sure. they could give you more time, they could float you some, they could even forgive you of the whole thing. everything would be peachy and no one would freak out about anything. the percentage of people who have mommy and daddy supporting them, however, is very small. very very small. miniscule. maybe that's why bush has no clue how to deal with the economy…

That's a good one Drunkle.

[PerryChase]

Core inflation excludes food and energy. Great! Two things people can’t live without.

Higher inflation means they have to jack up interests to contain inflation. Plus pensioners would get more money.

[PerryChase]

Core inflation excludes food and energy. Great! Two things people can’t live without.

Higher inflation means they have to jack up interests to contain inflation. Plus pensioners would get more money.

[PerryChase]

Core inflation excludes food and energy. Great! Two things people can’t live without.

Higher inflation means they have to jack up interests to contain inflation. Plus pensioners would get more money.

[PerryChase]

Alex, you seem to have a split personality. Sometimes you are reasonable, and other times, you come off as an FB in trouble.

1) I’ve been calling people dumb for buying since 2002. When prices revert to those levels or below, they’ll see how dumb they were. Slaving all those years to pay for an overpriced house is not what anyone would call smart.

2) You can indefinitely rent a nice home in a nice neighborhood where you want to raise your kids. Kids don’t care how the house is financed (rent the house, or rent the money).

3) Life is about opportunity costs and making wise choice. Even if you can “afford” an overpriced house, you can also buy other things with that money — vacations, travel, saving for retirement, education, etc… People have been giving up a lot to own those mc mansions. Living prisoner of a cookie cutter house is no way to broaden one’s horizons and learn about the “real” life.

4) The majority of professional jobs in SD is based on venture money. When that easy money is gone, there’s be retrenchment and layoffs. What are the laid-off workers going to do?

5) Recessions are sure things. They always hit at the most inopportune moments. The best time to buy is when others are selling. Smart families save during the good times because the hard times do come around. Jobs are not forever and companies do come and go. I’m afraid that many professional families will be in for a nasty surprise.

6) Regardless of when the bottom will be, it’s dumb to buy when all signs indicate that the bottom is nowhere on the horizon. The alternative it to rent.

[PerryChase]

Alex, you seem to have a split personality. Sometimes you are reasonable, and other times, you come off as an FB in trouble.

1) I’ve been calling people dumb for buying since 2002. When prices revert to those levels or below, they’ll see how dumb they were. Slaving all those years to pay for an overpriced house is not what anyone would call smart.

2) You can indefinitely rent a nice home in a nice neighborhood where you want to raise your kids. Kids don’t care how the house is financed (rent the house, or rent the money).

3) Life is about opportunity costs and making wise choice. Even if you can “afford” an overpriced house, you can also buy other things with that money — vacations, travel, saving for retirement, education, etc… People have been giving up a lot to own those mc mansions. Living prisoner of a cookie cutter house is no way to broaden one’s horizons and learn about the “real” life.

4) The majority of professional jobs in SD is based on venture money. When that easy money is gone, there’s be retrenchment and layoffs. What are the laid-off workers going to do?

5) Recessions are sure things. They always hit at the most inopportune moments. The best time to buy is when others are selling. Smart families save during the good times because the hard times do come around. Jobs are not forever and companies do come and go. I’m afraid that many professional families will be in for a nasty surprise.

6) Regardless of when the bottom will be, it’s dumb to buy when all signs indicate that the bottom is nowhere on the horizon. The alternative it to rent.

[Author]

Posts