OK, I'll admit, it's been a constant parade of doom and gloom here since the bubble burst. So how about some good news?
What good will come out of the collapse of the housing bubble?
Here's a few for starters:
1) Kids graduating from college will be able to buy a home, with a fixed-rate mortgage, with payments at normal percent of income levels, and at normal debt-to-income ratios
2) Investors will get positive cash flow by buying homes, fixing them up and renting them out
3) A generation will be scared of investing in get-rich-quick schemes, emulating the WWII generation's penchant for savings, hard work and high morals, versus the greedy baby-boom generation's destructive and self-centered behavior
4) Homes will be places to live in, invest in, fix up and pass on. Not dot-com stocks, not ponzi schemes. And no more interest-only, negative ammortization, no-down, no-doc crap
5) People will lose trust of the Fed, the government, financial institutions, realtors, mortgage bankers, appraisers, developers and the mainstream media
March 08, 2006
To much negative-nelly - now how about some good news?
Subscribe to:
Post Comments (Atom)
7 comments:
Of these, #5 is the best outcome.
I hate to tell you this but its the baby boomers in mass that bought houses the good old fashion way 25 to 30 years ago . Prices were high at 10 to 12& interest . Its the x generation that wants everything handed to them on a silver platter . Baby boomers were peace love and rock and roll in their youth and when they grew up they finally settled down to mortgage payments , working and bringing up brat kids . It kills me the way you people on the blogs
only talk about baby-boomers as a liability to society while you wait to inherit their hard earned gains over 30 years in real estate . So what if they want to buy a condo in FLORIDA ... you brat kids will end up with it one day if the medical system doesnt take it . The baby boomers were for social justice far more than the younger generations are these days .
With the current generation up to their eyeballs in debt... I guess all those positives will go to the undocumented immigrants and their kids!
OLE!
housing wizard - thanks for illuminating the coming battle between boomers (who spent all the money) and x'ers and y'ers (who owe all the debt)
here's my indictment of the boomer generations (with a note that of course there are wonderful boomers like HP's parents who reject what their leaders and peers did to this country):
* ran up over $7 Trillion ($7,000,000,000,000) in debt (so far), while writing themselves big wet kisses into law - prescription drug being the latest - forcing their kids to pay for their party
* defined run-away, me-first, feels-good-do-it consumerism
* outsourced our manufacturing base to china, while allowing wal-mart to put the WWII generation's businesses out of business in their unquenchable need for cheap consumer goods
* created the housing bubble, so that they could cash in to pay for their retirement, just in the nick of time as they never did save. however, made it near impossible for gen x and gen y to buy a home at the new prices
* cared about things and possessions and keeping up with their neighbors - hummer h2's, big houses, watches, clothes, etc. Gen X and Gen Y are indeed slackers - and care about materialism much less than boomers
* Were the complete opposite of their WWII generation parents - hard working, altruistic builders of a great country
the first battle of the generation war will take place with the bursting of the housing bubble (by gen x / gen y buyers who refuse to buy from boomers at these prices). then we'll move on to repealing the prescription drug benefit, cutting social security cost of living increases, and finally overhauling medicare/medicaid right when the boomers needed it the most. then we'll undo the boomers foreign policy plunders and blunders.
tough decisions are ahead - to be made by gen x / gen y leaders. the money's gone - the boomers spent it - and the cuts in many cases will be to the bone.
or I could be completely wrong, and gen x / gen y pass the problems on to their kids just like the boomers. we'll see
Ouch.
* cared about things and possessions and keeping up with their neighbors - hummer h2's, big houses, watches, clothes, etc. Gen X and Gen Y are indeed slackers - and care about materialism much less than boomers*
That's a trait that is passed to my (Gen x) generation. The difference is the boomers are able to pay for a lot of that stuff cash if they wanted where people my age are buying everything now and will be working until their in the grave to pay it all back. Imagine being 60 and still working to pay for a dinner you ate and passed over 30 years ago? Or a Hummer H2 that was given away in 2008 when gas prices hit $6/gallon but you're still trying to pay off the credit card on which you intially put the Hummer.
It's bad enough to know some idiots who are on their 5th car (new car every 2 years) and still owing on the 1,2,3,4 and current car.
Such a TERRIFIC post Keith. Why the degeneration into boomer vs. gen X people?
It's about time people started outlining the BENEFITS of the burst.
Too much focus on all the blogs about the negative consequences- blood in the streets, etc.
Time to start taking a look at those who will benefit once this RE fiasco is over.
A lot of positives, both for individuals and for the culture/society at large will come out of this rupture.
Post a Comment