(Hypothetically!)
In 3 years, if they lined 'em all up, who would they use it on?
* Their realtor who told them about that can't miss condo
* Their appraiser who appraised it 100% above the last sale price (2 years ago)
* Their mortgage banker who got them into the house through a zero down interest only negative amortization
* Greenspan for keeping rates so low for so long
* Their friend the condo flipper who recommended they get on the bandwagon
* The Chinese for buying all those bonds causing interest rates to be artificially low
* Donald Trump and the real estate pumper crowd
* Bob Toll and his Homebuilder buddies
* Themselves
????
February 02, 2006
Question for HP readers - The American homebuyer has one spitball
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23 comments:
They should take a good look in the mirror, and realize who’s really at fault here.
While I take the point, I think (that it's hard to know who to blame for the situation), I don't particularly appreciate the metaphor.
If things go poorly, a lot of good people are going to get hurt, and be justly upset. But there are enough wackos floating around who don't need an excuse for violence.
Let's just hope the scumbags get a taste of the same pain that the unwitting homebuyer feels. Seems more fitting than a bullet.
Regular reader.
They'll blame the realtor IMO. He's the who told them they must BUY NOW; the mortgage crooks were just the means to the end.
It would be better to debate the issue of whether the housing market is in trouble. It may be a little premature to start laying blame for a crash that has yet to occur.
No elses fault but their own. The blame sits squarely on their shoulders.
* Their realtor who told them about that can't miss condo - Top 2
* Their appraiser who appraised it 100% above the last sale price (2 years ago) - Just working for the realtor; liar for hire (if only the buyer knew that, though...)
* Their mortgage banker who got them into the house through a zero down interest only negative amortization - Top 3, pocketed ten of thousands per deal selling the top margin toxic loan like it's tripe.
* Greenspan for keeping rates so low for so long - Money is fungible, and cheap money for loan can be spent on anything the debtor wants, just happens to be a house in this case.
* Their friend the condo flipper who recommended they get on the bandwagon - The same guy who turned you on to Pets.com in Jan of 2001? And you listened to him?
* The Chinese for buying all those bonds causing interest rates to be artificially low - can't blame anyone who wants to give me a bargain for anything I'm willing to buy.
* Donald Trump and the real estate pumper crowd - Worst comb-over on TV; who takes him seriously?
* Bob Toll and his Homebuilder buddies - Who? Yes, WE know who he is, but he's not exactly King George there, Jefferson.
* Themselves - Only if they have life ins. w/o a suicide clause.
Better plan, sue everybody and pick the deep pocket, the new American way.
Perhaps the media for not raising awareness of the speculative espisode much earlier on.
David
Bubble Meter Blog
It's really themselves as consumerism habits allowed for Chinese to hold a ton of USD in which they decided to buy bonds with (and keep rates low).
Greenspan ties as my top pick because he did a lot of damage by allowing ARM lending to get out of control.
That does lead to lending regulations... there are just so many factors over all that just added exponential burden.
the banker and his million dollar NY condo
Ourselves...for not staying awake in history class when they discussed financial manias and bubbles.
Who did we blame the stock market crash on? The Stock Market itself? Did we blame it on "The Economy?" Dot-coms? What goes up must come down? Most people never stopped to wonder why real estate prices were going up so rapidly, and they probably won't have any idea of why they went down so rapidly. I think a lot of people--especially the dumb ones who fell for bad financing deals--will just think it's the luck of the draw.
Katrina.
I have sucked all the juice out of my spitball, now it won't fly.
:(
I'll try to re-juice it and list it on eBay.
:)
It's the stupid consumers own fault. Period.
I suppose you could argue that nobody in charge tried to protect them from themselves but really let's get serious here, these were not 2 year olds buying over-priced sh*@tboxes. They were all "adults".
If someone can't intuite that it's a bad idea to bid a property UP then I don't know what to say besides : stupid a$$holes.
Not to mention that, towards the end here, the price run-up has been fueled by a lot of downright greed on the part of individual consumers (along with the institutions of course).
Yeah, the hapless schmuck who got sucked in because they thought they'd get priced out forever otherwise, maybe a tinge of regret for them.
But honestly, couldn't they have for one moment reflected on the financial consequence to themselves? And just said no?
Any idiot can see it costs less to rent than buy right now.
The fact that they got sucked into the "debt is king" philosophy has fueled this mess and the fact that so many Americans are so willing to go into massive amounts of debt just so they can have more "stuff" only proves that they've lost their compass about what's important in life.
I think the "It's the stupid consumers own fault. Period." explanation is a major oversimplification. There were many factors at play. One of the key factors is speculative mania, which supersedes personal accountability by definition.
I have a good analogy: Coca-Cola.
Suppose all TV ads were filled with Coke advertisements, free coupons in the mail, and an enormous industry saying how smart, active, energetic and healthy you will be by drinking Coke.
Yup, "Coke Classic", chock full of high-test crack cocaine.
When the brain damage hits, is it *all* the coke drinkers fault then?
Or maybe the coke dealing industry has some responsbility too.
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