[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]

In the 1990s I saw them cut the size of the houses while trying to maintain the prices. Back then the houses were not as large. There were few 4000-5000sf houses.

[PerryChase]

In the 1990s I saw them cut the size of the houses while trying to maintain the prices. Back then the houses were not as large. There were few 4000-5000sf houses.

[PerryChase]

In the 1990s I saw them cut the size of the houses while trying to maintain the prices. Back then the houses were not as large. There were few 4000-5000sf houses.

[PerryChase]

rb_engineer, you’re blaming the press for Iraq and for the stock market?!

What about when they were telling us that Iraq would pay for itself and home prices can only go up?

[PerryChase]

rb_engineer, you’re blaming the press for Iraq and for the stock market?!

What about when they were telling us that Iraq would pay for itself and home prices can only go up?

[PerryChase]

rb_engineer, you’re blaming the press for Iraq and for the stock market?!

What about when they were telling us that Iraq would pay for itself and home prices can only go up?

[PerryChase]

A lender does not necessary need deposits to make loans. Money is created everyday by private entities — stocks, debts, options, contracts, etc… Those are tradable and convertible into legal tender cash. As long as there’s not a “run on the bank” we’re fine. It’s a psychological game of keeping up confidence in the system.

[PerryChase]

A lender does not necessary need deposits to make loans. Money is created everyday by private entities — stocks, debts, options, contracts, etc… Those are tradable and convertible into legal tender cash. As long as there’s not a “run on the bank” we’re fine. It’s a psychological game of keeping up confidence in the system.

[PerryChase]

A lender does not necessary need deposits to make loans. Money is created everyday by private entities — stocks, debts, options, contracts, etc… Those are tradable and convertible into legal tender cash. As long as there’s not a “run on the bank” we’re fine. It’s a psychological game of keeping up confidence in the system.

[PerryChase]

Hype, congratulations on getting a great loan rate.

However, just because you got a good jumbo rate doesn’t mean that others will be able to do so. That’s the point that is being made here.

Unfortunately, your good rate might get quickly obviated by falling values.

Watch OCrenter’s website example of declining values.
http://bubbletracking.blogspot.com/
It’s good lunch time entertainment.

[PerryChase]

Hype, congratulations on getting a great loan rate.

However, just because you got a good jumbo rate doesn’t mean that others will be able to do so. That’s the point that is being made here.

Unfortunately, your good rate might get quickly obviated by falling values.

Watch OCrenter’s website example of declining values.
http://bubbletracking.blogspot.com/
It’s good lunch time entertainment.

[PerryChase]

Hype, congratulations on getting a great loan rate.

However, just because you got a good jumbo rate doesn’t mean that others will be able to do so. That’s the point that is being made here.

Unfortunately, your good rate might get quickly obviated by falling values.

Watch OCrenter’s website example of declining values.
http://bubbletracking.blogspot.com/
It’s good lunch time entertainment.

[PerryChase]

For one thing, without cash flow, the lenders will soon close their doors. Looks at an Option ARM. The borrower pays the minimum but the bank books the whole amount of interest (a big chunk not paid) as income. How long do you think the lender will last with accrual income but no cash flow?

The loans don’t reset then income cannot be booked, or huge write downs must be taken. Lender goes out of business and the executives don’t get big bonuses.

[PerryChase]

For one thing, without cash flow, the lenders will soon close their doors. Looks at an Option ARM. The borrower pays the minimum but the bank books the whole amount of interest (a big chunk not paid) as income. How long do you think the lender will last with accrual income but no cash flow?

The loans don’t reset then income cannot be booked, or huge write downs must be taken. Lender goes out of business and the executives don’t get big bonuses.

[Author]

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