Patrick.net pointed out this gem. You got it - when people say "there is no housing bubble" they are now, as of today, firmly correct.
Now, if they said "there was no housing bubble", you'd know they were clueless or a liar
September 10, 2006
Depends on what the definition of "is" is... It is now true, there is no housing bubble
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I don't care what these so-called experts or authority in economics says; I try to live a simple and non-complicated life when it comes to finances.
My formula: INCOME - SAVINGS = EXPENSES.
A typical household today has this:
INCOME - EXPENSES = SAVINGS or worse yet: EXPENSES - INCOME = NEGATIVE
Experts said, The Titanic could never sink!
It's premature to say the bubble is gone. Until inflation-adjusted house prices are back where they were in 2000, until Lereah is being raked at a senate hearing and NAR is under investigation, until the last of the HELOC-financed Hummers and BMWs are finally repo'd from my street ... there is a housing bubble, slowly leaking air.
I think people mean that we've certainly passed Peak House. We are far from bottom though.
Onto Peak Oil.
Petroleum: the Mother of of all bubbles.
The difference is that things get incredibly expensive on the downside of Peak Oil.
I predict that in 30 years, the clear majority of people's expenses will be for energy: fuel, utilities and food.
The notion that once upon a time "the mortgage" was the big monthly nut would be preposterous. And especially this "obesity epidemic" will be as farcical as the 18th century's "wig epidemic".
In Africa they're already there.
More like 1997-2005,2006,2007,2008,2009,2010..............RIP?
I have always been amazed and dumbfounded at the same time, at the so-called experts in any field.
I often wonder how Truly out of touch with reality they really are. They say one thing, but I painfully see another in the real world!
They say housing is still a good value, but i'll be damned if i can afford anything out here on the left coast, and it seems no one else can either! 'For Sale' signs Everywhere!
First time buyers are totally priced out, you can't eliminate your base without something comming undone. Can you?
For people living elsewhere, you would not believe what $500k will buy you, or should i say 'won't' buy you here in LaLa land.
I've lived in SoCal since '72 and owned property, i watch my spending and i can barely afford a medium home in a 'so-so' neighborhood.
From Where and How are people comming up with the money?
Are some still falling for all that creative financing Crap? They
can't be that ignorant can they??
I'm no 'Expert' but something just doesn't pencil-out with reality here, and elsewhere!
The bubble is definitely exploding. There is a shock wave in the air. This is going to be bad! Hold on for the ride. Thanks
Greenspan for the leadership, straight over the cliff. Sir Al the leader!
"From Where and How are people comming up with the money?"
It's the very same question I asked myself, looking at the ever-rising median housing prices for the past 4 years.
The janitor at my company just bought a 2800sf house. I have a college degree and can't afford one unless I go with an option ARM. He's also an illegal so he probably got gov't assistance
THIS IS LIKE ARGUING IF THE MILLENIUM STARTED IN 2000 OR 2001.
JUST BECAUSE THE BUBBLE IS BURSTING, YOU CANT SAY THERE IS NO BUBBLE. NOT UNTIL PRICES SETTLE DOWN CAN YOU PUT IT IN THE PAST TENSE (THE BUBBLE HAS BURST). WE'RE ON THE BACK SIDE OF THE BUBBLE, NOT PAST IT.
AND BY THE WAY, THAT JESUS DUDE WAS BORN IN YEAR. THAT'S WHY THEY SAY "ANNO DOMINO" (THE YEAR OF OUR LORD). MILLENIUM IS YEAR 2000. GO HOME YOU GEEKS THAT THINK OTHERWISE!
"Are some still falling from that creative financing crap? They can't be that ignorant, can they?"
Oh yes they are. These are the people who don't have the basic fundamentals of housing to income ratio and the law of supply and demand. They believe or were made to believe that, because the interest rates are trending upwards, now is the thime buy or they won't or NEVER be able to buy in the future.
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Monday, September 11, 2006 5:58:20 PM
*** this board is run by the commie! ***
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