"It's different this time"
"It's the demographics"
"Real estate never declines"
"Housing is your best investment"
"Negative cash flow doesn't matter"
"Let's get you in with an interest-only"
"Realtors are worth their commission in gold"
"New construction condos are a great investment"
"Bubbles are for bathtubs"
May 19, 2006
Looking back on the Late Great Housing Bubble, isn't it going to seem all so obvious?
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11 comments:
You also can't leverage yourself 100%, have a carry cost equal to 50% of your monthly pay and have the roof leak on a stock. Oh and I dont pay real esate taxes on a stock. In fact, when I lose money on a stock, the govt subsidizes me by allowing me to write off my loss. Last time i checked, you can't do that with a house.
leverage 100%? Try 50,000%.
Put $1,000 down on a $500,000 house
that's a hell of a lot of leverage, and why this bubble and crash will make any stock market crash look like a joke
when I lose money on a stock, the govt subsidizes me by allowing me to write off my loss. Last time i checked, you can't do that with a house.
Only if you're an tax-planning idiot.
I still haven't seen housing prices drop significantly. It is hard to sit and wait to see what happens. The houses that are on the market are overpriced and may "reduce" a few thousand, but no one seems to be pricing for the market.
Only if you're an tax-planning idiot.
Thanks, that was a productive comment. I guess you never took a loss on a stock cause you're brilliant? I'm sure the JDSU you bought at 105 is gonna come back cause Cramer told you it would.
For each house reduced- there is someone, who has to decide to loose money, admit they are wrong, and decide to reduce the price.
This takes time. These ego-inflated consumers don't like to admit they've been wrong.
The bubblesitters shall be victorious in the long run. The real "bottemfeeder deals" may take several years, many mortgage company failures, and numerous homebuilders going out of business amongst fraud, and shoddy building accusations.
It will happen.
MAJOR PONZI SCHEME!!!
"if they are granted amnesty"
LOL! The dickheads in Congress just gave them amnesty leading to citizenship, and full SS/Medicare when they reach retirement age!
Boy, I'd hate to see what might happen if Congress really got tough and cracked-down on the taco benders.
It is truly different this time! now we have 10 times more idiocy in the RE markets than in 1989. I guess all those folks who believe it's different this time have not read about past RE/asset bubbles such as the florida crash of 1925, the south sea bubble,th Japan RE collapse of 1989 -2000, the Stock market crash of 1929, the Nasdaq burst of 2000-2001, RE crash of 1989-1996, ad infinum. Nothing changes; history repeats itself and people's ignorance of past Historical economics and mathematical illiteracy remains the same.
anon wrote:
Private citizens may make citizens arrests of lawbreakers (i.e., illegal immigrants) and hand them to the authorities.
Immigrants may be expelled from Mexico for any reason and without due process.
Perhaps we should simply mimic their laws?
If you want to live the life of sectarian violence like you see on the streets of Baghdad with the burned bodies of civilians on the nice sunny day, go for it.
Osopolar2000 wrote:
The way to deal with Mexico is not by scapegoating Mexican immigrants. The only solution that is going to work long term is an economic Marshall plan for Mexico similar to the one which helped post war Europe and Japan.
Oh, but it's so much more fun to write moronic racist comments on housing blogs.
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