HousingPanic Stupid Question of the Day

November 03, 2006

HousingPanic Stupid Question of the Day

Be honest. Are you rooting for this epic housing crash?

85 comments:

Anonymous said...: Yes, because my wife and I have worked very hard, have relatively good salaries, and still can't afford to buy anything in the city where we live.; November 03, 2006 5:00 PM
FlyingMonkeyWarrior said...: What ever happens, I am ready.
I shall watch from the sidelines.; November 03, 2006 5:04 PM
Anonymous said...: yes I have a vested stake in it through puts on housing related companies; November 03, 2006 5:05 PM
Anonymous said...: It beats trying to round up friends to put up a hay bale home in over priced Marin/Moron County USA. Besides Slavery is illegal.

Who would not want an over inflated market to get back into reality except the greed mongers who profit from it.; November 03, 2006 5:08 PM
Anonymous said...: Yes. Have Puts on Builders. Will make over 1 million when they collapse.; November 03, 2006 5:08 PM
Anonymous said...: HomelessFromBubble said...

Yes, Bush and Greenspan have turned the USA into a big casino. The American dream of buying a home is now the American financial death wish. Thanks Bush, I hope the history books record you and Greespan as the devils who caused millions to go bankrupt and lose their homes. And I hope thats all you are remembered for!

Oh, and sending thousands of our kids to die in a war turned police action!

Also for throwing our Marines in prison and shackles for following your orders.

And stategery.; November 03, 2006 5:12 PM
David in JAX said...: Yes. I want an epic crash that brings us into a deep recession / depression. We need it to bring us (Americans) back to reality and to hopefully cause huge changes in the policies of our government. Big changes need to happen for our future.; November 03, 2006 5:20 PM
Anonymous said...: No

I believe that if a major housing crash happens, those countries effected will turn to right wing dictators who will be more likely to start wars. Remember - we got Ronald Regan and Maggie Thatcher in the early 80s, we did not get another FDR or Clement Atlee

Keith - what chance do you think Saddam Hussein has of getting a fair verdict on Sunday?; November 03, 2006 5:22 PM
Anonymous said...: Of course I am. I have a house which is paid off, cash in the bank, and worked 40 years to get to where I am. I drive a 15 year old Jeep with 200K miles. I'm a degreed professional with a Master's degree in Engineering,with a long work history of slowly saving money for my retirement, and am constantly amazed by these twenty-something old women in a shiny new black Expedition or Hummer with a young child strapped into the baby seat in the back, yakking away on their cellphones, and totally oblivious to the economic nightmare awaiting them. Call it schadenfreude, but I can't wait to see the fruits of their arrogance and selfishness.; November 03, 2006 5:22 PM
Bill said...: Yes, because my wife and I have worked very hard, have relatively good salaries, and still can't afford to buy anything in the city where we live.

-----------------

Here! here! things are way to expansive! And it make for good conversation in the I told you so Catagory.; November 03, 2006 5:38 PM
Bill said...: Yes. Have Puts on Builders. Will make over 1 million when they collapse.

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would someone post how to do this Puts thing please i am really interested..

thank you; November 03, 2006 5:40 PM
Anonymous said...: keith,

what do you mean by epic?

i am not sure i am rooting for an epic crash i.e. a great depression.; November 03, 2006 5:40 PM
Anonymous said...: "would someone post how to do this Puts thing please i am really interested.."

its just too hard to pass up that "get rich quick" mentality.

how easy we sucumb to that which we are so critical.; November 03, 2006 5:42 PM
blogger said...: epic in this case being historic; November 03, 2006 5:44 PM
Christina said...: No. I am rooting for a return to 2002 prices, but not economic devastation.; November 03, 2006 5:44 PM
Andy said...: Yes, because I love to see the greedy and ignorant get taught a lesson about the harsh realities of life. FYI, I make $11/hr. at a job I love, have two children and two college degrees.

Also, although this isn't really relevant, I read the Wall Street Journal and three local papers every day. Not everyone who is "working poor" are dumb, high school dropouts as the MSM likes to stereotype us; some of us just have greater priorities in life than money.; November 03, 2006 5:45 PM
Anonymous said...: Yeah, already stockpiling ammonium nitrate, pipe bombs, guns, ammo, ricin, sarin, anthrax, you know, standard stuff.

Remember, if you're not with David Lereah... you're with the terrorists.; November 03, 2006 5:46 PM
Anonymous said...: I'm rooting for the whole thing to tank ... the system isn't set up so everyone gets to be rich. It's set up where everyone gets to be exploited by the rich with a vapid 'American' dream.; November 03, 2006 5:47 PM
Bill said...: I would be happy with a big price drop. I'm disturbed that folks want a depression, are you going to take care of all those suffering people(including kids)?
If things get too bad folks will find out YOU have something and come to get it. I know I would if my kid was hungry or sick. We do need a serious correction and a revaluation of what it means to live but hurting millions isn't the way to go. Route for your investments, not for people's suffering.

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great post Joey!; November 03, 2006 5:49 PM
Anonymous said...: Google Put Options

Google Call Options

Google Shorting Stock

Summary. Shorting a stock allows you to make money when the stock falls.

Puts allow you to do the same thing with more leverage. Within the put options there are different ones you can buy that give you more leverage.

1. In the money put options have a lower reward and lower risk.

2. Out of the money put options have greater reward and greater leverage.; November 03, 2006 5:51 PM
Bill said...: @@ BUY ME @@

http://tinyurl.com/8p3hk

The word around town was that the Hummers weren't moving. It looked like high gas prices and a White House reversal on fuel conservation meant that fewer "W" bumper stickers would find their exposed sticky sides mating gloriously with the smooth rear bumper of an H2, somewhere between the tow loop and the access hole for a Class 3 hitch.; November 03, 2006 5:59 PM
Paul E. Math said...: Yes, I am. I though I think we should all be careful what we with for. What I would really like is to wake up tomorrow and realize this whole housing bubble was a bad dream.; November 03, 2006 6:02 PM
Anonymous said...: I don't want a housing crash-led depression AT ALL. Remember that America is the land of the 200,000,000 handguns. If we have another depression that results in high unemployment and destitution of the masses, I predict we'll have rioting in cities and many resulting deaths. And then we'll have martial law declared and who knows if we will ever see democracy again in this country....; November 03, 2006 6:03 PM
Anonymous said...: I hope housing drops to 01-02 levels soon. I'm not rooting for a depression or anything. I just don't think 100%+ appreciation in 5 years is normal (so cal). I just wish these sellers would get it through their heads that a $5,000 price cut is nothing, try reducing it $100K or $200K.; November 03, 2006 6:06 PM
foxwoodlief said...: I'd rather see the national debt reduced. I'd rather see government spending at every level reduced and people allowed to reap more rewards for work, not speculation.

Not rooting for a housing collapse. A correction, Yes, how much? Depends on supply and demand and not speculation and fraud. I'd rather see wages rise. For many families their incomes have not risen to keep up with inflation or what our fathers earned in the 50s,60s, and 70s. Most people in the 60s could buy a starter home on one income. It wasn't because the houses were cheaper, it was because they earned more. As I've mentioned many times, my parent's first house (and they still live in it) was 1100 sq ft (they built on to it rather than move over the years) and was equal to $180,000 today. My father's 1962 income would have been equivelent to $60,000. When he retired in 2000 his income in todays dollars was $65,000. So even though he felt his pay had gone up, in inflation adjusted terms it didn't. There lies the problem.

In most places the cost per sq ft for homes (nationally not necessarily in places like SF, NY) are still close to what our parent's paid per sq ft for a better home. Problem is with two incomes many make what one person earned fifty years ago.; November 03, 2006 6:17 PM
Anonymous said...: If house prices were to return to 2001 prices, this would cripple the banking industry leading to a massive credit crunch. How many of the people reading this blog can pay cash for a new house?

You should be careful what you wish for, since you may end up having to spend your whole life in rental accomadation because you cannot get anyone to lend you money - a true return to victorian values; November 03, 2006 6:19 PM
Anonymous said...: I've cashed-out.
I'm waiting for prices to hit bottom so I can get a downsized house.
I think this will take at least 1.5 more years (probably flat prices for 2 years after that).
I hope we don't have a depression.
I have CDs, but I don't want to see the economy screwed.; November 03, 2006 6:42 PM
Anonymous said...: Realtor® troll alert: Amigauser.

There will be a housing crash and a hyperinflationary crack up on necessities. Better buy gold, silver, and platiminium. Get ready to buy a house in '08.

FMW, that suit is hot! That pic is now in my secret lair. Bwahaha! Woof!; November 03, 2006 6:45 PM
Anonymous said...: >> I have a house which is paid off...

Which the State rents back to you via prop taxes. Don't pay the taxes and see how long you "own" your home.

Oh, and although it sounds like you've done everything right - you're still going to get f*****...; November 03, 2006 6:50 PM
Anonymous said...: The question is, am I rooting for a housing crash? If rooting for a housing crash means people must have a down payment and fraud is no more, then yes. The REIC is corrupt like KGB.; November 03, 2006 6:57 PM
Anonymous said...: I do not have anything to do with any part of the real estate business, so I am not a troll.

But i think that the problem this blog has is that it is preaching to the converted - you all believe that your housing problems will be solved by some sort of price collapse.
I say that a price collapse will damage the banks and bring on some sort of credit crunch. If you think I am wrong tell me why? Who will u lend money to buy your house?

Definition of a gold bug = someone who held an assest that for more than 20 years fell in price, but always said next year the dollar will collapse ;-); November 03, 2006 6:58 PM
Anonymous said...: Thing is, I'm too cautious to walk away from my cushy but somewhat boring/annoying (sometimes fun/rewarding) programming job. A complete collapse would make the decision for me. I think, like Terry Gilliam's character in Brasil, many of those wishing for Great Depression II, Bigger and Badder are looking for a way out on both a personal level while harboring a deep-seated discontent with "the system" which is so obviously flawed, a juggernaut headed over a cliff. We chew up non-renewable resources and spit them out as pollution, and millions of people are dirt poor, worldwide. There sure are many things I would miss from the mass-production/cheap goods/cheap fuel whacked-out setup that may prove to have been the "height of civilization". Please, don't take away the interweb! Still, if this is best we can do, we're in real trouble. And human nature, as reflected in this very blog, doesn't exactly leave one brimming with hope. We have all the technical and logistical answers, but apparently not the will. If civilization collapses, why would we rebuild the right way next time around?; November 03, 2006 7:03 PM
Anonymous said...: I'd like to see a "slowish" but marked deflation that is pronounced enough for everyone to recognize and that no one could debate that whether it is or isn't happening - David Learah would have to find honest work. I'd like it to be slow enough to show people who bought into the mania the error of their ways but not so fast that it totally buried them. I don't want people kung fu fighting each other in the street (Everybody was kung fu fighting - man I love that song) but I do want them to get the big wet tuna slapped across their faces hard enough that they can recognize AND LEARN from the bullsh*t. Call me a sentimental a*s but I love the good ole USA and I don't want to see it crash and burn but it would be nice to see it "remake" itself like it has done before - if Madonna can do it surely we can. HA! Childrens books? Indeed - remember when Dennis Rodman from the Pistons was getting it on with her? Freaky (but also kind of a turn-on - but I digress). Yes I want there to be a solid ass kicking but not a killing. America does need to be taken to the woodshed financialy but not lynched. (IMHO). I could very nearly buy the kind of bachelor pad I need in cash (nearly but not quite) IF prices got about a 50% haircut but I don't see that happening in my neck of the woods. I'd say we're in for a 20-30% one so it would be cool if we could see a steady 3% loss per month in asking prices.

Smug Bastard; November 03, 2006 7:04 PM
Anonymous said...: I'm a geyser sed:

...you all believe that your housing problems will be solved by some sort of price collapse.

Not some sort of price collapse, THE MOTHER OF ALL PRICE COLLAPSES! After this crash people with good credit and a down payment will be so rare that the new banks will kiss our feet when we walk in. Bwahaha!!; November 03, 2006 7:05 PM
Anonymous said...: I have a priapism for the housing crash!

I can't wait for it to completely unwind because it's starting to hurt (my priapism, that is).; November 03, 2006 7:10 PM
Anonymous said...: I'll have to leave the state before I can find anything affordable with 3 rooms and a decent yard.

In my area, I'm hoping for at least a 50% implosion.; November 03, 2006 7:11 PM
Anonymous said...: Those who would have the best credit rating would be the top 1% of the population. If we have a drastic price crash, the countries housing stock would end up in their hands and you would then spend the rest of your life as a renter - a neo serf.

Generalised home owning is only a recent development and we could easily return to some sort of rentier economy.
What percentage of the population owned thier own home in 1890, 1920, 1930 etc?; November 03, 2006 7:19 PM
Anonymous said...: Hey Keith, you're famous.

One of my favorite bubble blogs is Housing Panic. Written by an expat named Keith, the blog mixes its market analysis with schadenfreude-fueled high jinks: postings of YouTube real estate satires and plenty of images of houses falling into gaping maws.
While its onslaught of bitter invective against "the corrupt Real Estate Industry Complex" invokes a nefarious conspiracy of the powerful, it also lays blame on the madness of crowds.

Maybe Amigauser folled this link over here?; November 03, 2006 7:20 PM
Anonymous said...: I lived through the depression already, the mid-1970's.

When we did not have enough to eat, my brother and I would dress up in ninja costumes and with knives, take out one of the neighbors' dogs. They were noisy anyway. : D

We'd have to eat part of the kill first if we were to get anything, but if there was not sufficient meat on the carcass when we brought it home, our father would beat us!

Kids these days have it too easy. When the Greater Depression comes, hide your dogs!; November 03, 2006 7:22 PM
The Thinker said...: The best way to ensure long-term economic HEALTH of the nation is for a correction in housing that wipes out all of the paper gains of the last 5 years.

I think such a correction may well be called epic.

While such a correction would be sour medicine, the economic fallout of NOT having such a correction would be far worse.; November 03, 2006 7:28 PM
Anonymous said...: like the old black dude in Raising Arizona in prison says "when there was no craw dads, we ate sand."

Nicholas Cage asks, "You ate sand?"

old black dude replies "yes, sand".; November 03, 2006 7:28 PM
Anonymous said...: no

i discovered this site via a gold bug site - Financial Sence - reality reality.

I notice that no one has yet said how they would be able to purchase a house if their was housing induced credit crunch.

I would recommend you put your money in gold, that way your money will be in a hard assest that has a 20 year consistent record of losing money :-).; November 03, 2006 7:34 PM
Anonymous said...: I'm a geyser, I've been getting a lot of advice like that around here. Lately I have invested everything in lottery tickets, my ship will come in.; November 03, 2006 7:41 PM
Bill said...: Anonymous said...

I lived through the depression already, the mid-1970's.

When we did not have enough to eat, my brother and I would dress up in ninja costumes and with knives, take out one of the neighbors' dogs. They were noisy anyway. : D

We'd have to eat part of the kill first if we were to get anything, but if there was not sufficient meat on the carcass when we brought it home, our father would beat us!

Kids these days have it too easy. When the Greater Depression comes, hide your dogs!

------------------------

ROTFLMFAO!

You know what they say "its a dog eat dog world we live in"; November 03, 2006 7:41 PM
Bill said...: Im going silver but that is a personal choise..great article here on the subject:

http://tinyurl.com/y4o6ve; November 03, 2006 7:43 PM
Bill said...: excuse me : choice; November 03, 2006 7:45 PM
Anonymous said...: amigauser,

congrats! You've correctly hit the nail on the head. The genius who thinks they are going to wait until the housing market implodes and then buy their nice house for pennies on the dollar is living a fantasy. When the housing price panic sets in, it will coincided with a great credit contraction and severe recession/ depression. Money will be sucked out of the economy. Credit will be non-existent. Unemployment will spike. If everyone had access to unlimited capital (like today) then every drop in housing would be met by anxious buyers; thus no housing price collapse.; November 03, 2006 7:51 PM
Anonymous said...: honestly, yes.

we need to wipe out the artificial "appreciation" from the last 2-3 years, and end the artificial propping up of the US economy based on using homes as ATMs.

a cold dose of reality will be good for all. AND IF I SEE ONE MORE SYMPATHETIC ARTICLE ABOUT SELLERS STUCK WITH TWO MORTGAGES/TWO HOUSES, THEN I WILL SCREAM !

oh, i guess i just did. sorry, i feel better now.; November 03, 2006 7:56 PM
Anonymous said...: YES.; November 03, 2006 7:57 PM
Bill said...: As many have said here it is not a US of A crash this thing is going Global:

Former World Bank Chief Economist Predicts Global Crash

http://tinyurl.com/vo3tp

Former World Bank Vice President, Chief Economist and Nobel Prize winner Joseph Stiglitz has predicted a global economic crash within 24 months - unless the current downturn is successfully managed. Asked if the situation was being properly handled Stiglitz emphatically responded "no," and also drew ominous parallels to the development of the NAFTA Superhighway and the North American Union.; November 03, 2006 7:59 PM
Anonymous said...: credit will remain avaialable. you are experiencing more of a credit bubble chasing real estate than a pure real estate bubble. it is leveraged with a great deal of excess credit. there will always be a lender and always a borrower but price (rate and terms) will float. i am long enough in the tooth to remember when you could only borrow on adjustable rate terms in most cases for real estate and fixed rate loooooong term deals (20 - 30 year deals) were not always avaialble. if you had not had the huge amount of cheap credit available during the past few years you would not have seen this real estate bubble because even before the Fed lost its mind, most regular people had to borrow to buy their houses. also, just anectodataly, several real estate agents a co-worker knows are eating beans right now because of the lack of sales except for one - an agent who deals with relocation people from foreign countries with lots of money and not a lot of sense. that agent is doing quite well skinning these folks with no clue in a foreign land. separating a fool from their money - i guess they don't read h.p. ;>}; November 03, 2006 8:02 PM
Anonymous said...: Yes, because my family makes $300K/yr and the only house we can truly afford is in a neighborhood populated by 20 somethings with crappy jobs and exotic mortgages.; November 03, 2006 8:15 PM
Bill said...: also, just anectodataly, several real estate agents a co-worker knows are eating beans right now because of the lack of sales except for one.

---------------

Just on this one comment alone I am shorting "Boston Baked Beans"...should be a winner in the coming months.; November 03, 2006 8:17 PM
Anonymous said...: What or who the hell is MSM

-------------

Main Stream Media: as in George Bushes clan.; November 03, 2006 8:18 PM
Anonymous said...: "As far as shorting the builders goes, Jim Cramer, the uber Goldman Sachs shill in disguise, recommended tham as a strong BUY! LOL!"

And 3 days ago he said to buy airlines. AMR and CAL. The sheep who fell for that are already down 10%; November 03, 2006 8:51 PM
Anonymous said...: The people demand depression; November 03, 2006 9:03 PM
Anonymous said...: I want the crash to happen hard and fast. Yes, it will affect everyone. No, I don't care. The sheeple need a wake up call, and the sooner it all goes to shit, the quicker we can recover from it.; November 03, 2006 9:09 PM
Anonymous said...: I wanna I wanna I wanna... circa 2001 prices in Orange County, Calif.; November 03, 2006 9:10 PM
Anonymous said...: The collapse of the bubble will cause much pain. I wish it were possible to fix things without the bubble collapsing. I believe the longer the excesses prevail, the worse the eventual collapse will be. If there is to be a collapse, sooner is better.

Be careful with shorting and those puts - I see that the bears have been getting screwed on a regular basis.; November 03, 2006 9:15 PM
Anonymous said...: Hey puts on builders, check out this article from Barron's:

http://online.barrons.com/article/SB116257021382312692.html?mod=9_0001_b_online_exclusives_left

The pertinent quote:

In 1990, the median price of a single-family existing home experienced its steepest decline of 8.6% year-over-year (in real terms), in November 1990. Meanwhile, home-building stocks fell 42% from their peak in August 1989 before reaching a bottom in October 1990, one month before the negative pricing trend peaked.

Most of the falling stock is done.
With options, you have to get price point and entry/exit timing correct. I lost alot of money in options as a neophyte stock trader.; November 03, 2006 9:25 PM
Anonymous said...: 21,387 OF THE ACTIVE LISTINGS ARE VACANT OR 45.4%

Per Phoenix MLS- May you investors lose it all and sleep good at night. I'ma local and love to see the look on your face when your house does not sell. BLA_HAHAHAHAHAHAHAhA--
GO BACK TO CALIFORNIA; November 03, 2006 9:31 PM
Anonymous said...: Hey grandquistor--- Nope we are not even close to the bottom.Holdon put on your seatbelt WEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE; November 03, 2006 9:32 PM
Anonymous said...: If we don't get a civil war out of the housing crash, I will be depressed. This century will not be worth it.; November 03, 2006 9:58 PM
Anonymous said...: ditto post numero uno, replace wife with girlfriend of five years that i would like marry if I COULD AFFORD A FREAKING HOUSE

-so sayeth white collar engineer boy stuck in eastern MA; November 03, 2006 10:09 PM
Anonymous said...: Houses coming down to 2000 prices is what I, and most people want.

However if houses do come down to these prices it would mean...

1) Fed increases rates
2) Consumer spending is reduced
3) Foreclosures increase 10 fold.

All the above will lead to lower house prices.......but also a deep recession.

A deep recession is a depression....it's like saying you are a little pregnant.

So even those of us who are not rooting for a depression....should get ready for one.; November 03, 2006 10:42 PM
Anonymous said...: Sorry folks, but we're overdue for a major recession or depression. Boomers and Gen X may have heard stories from parents/grandparents about the great depression, but few of them can really imagine what it must have been like.

The youngest current generation (what should we call them? 'sweet 16' generation, 'pimp my whatever' generation, 'material girls', 'ipods'?) has not heard any stories and has no idea. Depressions occur about once every 50-70 years.; November 03, 2006 11:07 PM
Anonymous said...: I VOTE NO Crash !...I am secretly living WELL in the subterainian basement of someone's 8,725 sq. foot McMasion between their wine celler and the sauna. Their walk in freezer is well stocked and they provide me with everything except a 401k and my own pony. A Crash would vastly change my stardard of living and I would be forced make their daughter to go out and earn a "respectable" living !; November 03, 2006 11:41 PM
Anonymous said...: Housing will crash. The economy will come to a screeching halt. We WILL have a major recession. The Righty Republicans have started the downward spiral of a superpower because of their dictatorship type rule of power. The Lefty Democrats would soon turn this mighty nation into another soft bellied European country with socialist ideals. This nation is done unless we get some moderates to lead us. We all know in our gut what is going to happen to our economy. Even an optimist that justifies with current numbers that our economy is strong goes to sleep at night knowing he is fooling himself. If you decide to drive at night with your headlights off, happy that the ground beneath you seems to be solid and continuous, what signs are there that a cliff is approaching? None, since you won't see the "cliff ahead" sign. For all those that choose to keep their lights off, have a nice fall.; November 03, 2006 11:43 PM
Miss Goldbug said...: Yes I want a crash in house prices!

We are using this time to study the market and prices of individual homes in our area.

We'll buy when prices are based on reality.

Hopefully by 2008.; November 04, 2006 12:22 AM
Anonymous said...: This is going to hurt the economy so bad, I don't know if I even care about affording a house anymore.; November 04, 2006 12:45 AM
foxwoodlief said...: I'd rather see the national debt reduced. I'd rather see government spending at every level reduced and people allowed to reap more rewards for work, not speculation.

Not rooting for a housing collapse. A correction, Yes, how much? Depends on supply and demand and not speculation and fraud. I'd rather see wages rise. For many families their incomes have not risen to keep up with inflation or what our fathers earned in the 50s,60s, and 70s. Most people in the 60s could buy a starter home on one income. It wasn't because the houses were cheaper, it was because they earned more. As I've mentioned many times, my parent's first house (and they still live in it) was 1100 sq ft (they built on to it rather than move over the years) and was equal to $180,000 today. My father's 1962 income would have been equivelent to $60,000. When he retired in 2000 his income in todays dollars was $65,000. So even though he felt his pay had gone up, in inflation adjusted terms it didn't. There lies the problem.

In most places the cost per sq ft for homes (nationally not necessarily in places like SF, NY) are still close to what our parent's paid per sq ft for a better home. Problem is with two incomes many make what one person earned fifty years ago.; November 04, 2006 1:01 AM
Anonymous said...: I watch CNBC every morning before heading to work. The poor analysts seem more and more confused as the days go by. The bond yield curves, stock market, unemployment numbers, housing, corporate profits, dollar value, oil prices, gold all don't seem to make sense to them. One doesn't seem to affect the other like they should. This is the hard drive glitch before a crash.; November 04, 2006 1:02 AM
Anonymous said...: I'm cheering for a cleansing of the system. The housing bust is just one component of the busting credit bubble. Yes, there will be suffering but our nation will be stronger as a result of this cleansing if we can avoid any wars. Better not just sit and watch but get some gold for security. ALL currencies will loose value as nations flock to gold to preserve wealth. Simple supply/demand; November 04, 2006 1:11 AM
Anonymous said...: Absolutely I'm rooting for it. My biggest fear is the banks involved have sloughed off enough risk in the secondary markets to survive it.

God I love a good bank failure. Been years.

Mr. PoPlicki; November 04, 2006 1:28 AM
Anonymous said...: David in Jax
"We need it to bring us (Americans) back to reality and to hopefully cause huge changes in the policies of our government. Big changes need to happen for our future."

I understand your plight, however, government will create more policies after the crash, which will make things worst in the long run, sorry. If they abolish the Federal Reserve and return the country to sound money then we have a step in the right direction. However, this will not happen. So, we just have to learn the game and invest wisely. I am one of those who made good money from this crisis.; November 04, 2006 1:35 AM
Miss Goldbug said...: Kilobar said: "As far as shorting the builders goes, Jim Cramer, the uber Goldman Sachs shill in disguise, recommended tham as a strong BUY! LOL"!

I saw an article this morning on Yahoo finance about that very thing - buying builder stocks now because they are a good buy...I guess, a good buy just like nasty Nar says houses are a good investment!

Kramer is a mindless twit. If people listen to his recommendations then they deserve to be parted from their money.; November 04, 2006 1:55 AM
Anonymous said...: Yes, I'll admit it.
In America everyone seems to love reality shows, but no one is prepared to look at their own reality. The credit card bills, the massive mortgage, the SUV with 8 miles/gallon and 19 inch chrome wheels.

Financial ineptitude is rampant here, and it starts with the teenage years when kids get their first credit card and head to the mall.

In Southern California people who bought homes 7 years ago for $200,000 and now miraculously they have appreciated to $780,000 or more in value.

One side of me is happy for them. But the other side - maybe it's "schadenfreude" - enjoys witnessing other people learn a very hard lesson about life...

Real estate is not the full-proof money making machine.; November 04, 2006 3:04 AM
Anonymous said...: I'm rooting for a crash...but a very slow one, so anyone with common sense can figure stuff out before they lose everything. I think this is what is happening now, people are just beginning to get it and the smart will refinance or sell before they lose their home. I hope. I wish that the bubble had never happened...I wish that the feds and our lazy gov would have placed regulations on the REIC. I wish that that lazy Greenspan would have raised short term rates sooner and in a more prompt manner. Mostly, though, I wish people were not so stupid. It does not do any good to wish, however...so the next best thing is to be aware and prepared.

Either way though, unfortunely, I think there are going to be tough times for people ahead. The housing/debt bubble is only the half of it. Globalization is what is going to make this very painful for many people. It's already happening and the financial bubble has only accelerated things for everyone.

The big question is, will you keep your job in a national economic downturn? If you think there is a good chance that you will not...you might want to think about learning an alternate skill.

Finally, what's with all the anons? Don't you people have any balls?, any integrity? If you're gonna spout off, at least give yourself a name, a tag, or a symbol (like Prince). Suck it up...; November 04, 2006 4:55 AM
Anonymous said...: Thats George Bush with the megaphone isn't it? Funny; November 04, 2006 6:01 AM
Anonymous said...: Absolutely!

My wife and I are in our mid 40's, No children, No debt, both work (my wife when she does work a long term job makes big money) and it is still not easy to afford the prices their asking for Crap boxes here in San Diego!

So yes, bring it on!; November 04, 2006 4:38 PM
Anonymous said...: When the average working man Can't or can barely afford a home, something is really out of whack!
These are the people our economy is built and based on, and now their pushed out of the market.
When one man can't afford but another can afford several upper end homes scattered throughout the nicest areas of the land, that's painfull!
Now, what the wealthy do with their money or how they got it is not my point. What is , is the affordability to the lower middle and middle class, the bulk of the people.; November 04, 2006 5:09 PM
Anonymous said...: I have studied this bubble by traveling to the bubble areas to see the situation first hand. I think my most vivid memory to date is getting gas in a gas station in the east part of Naples Florida in January 2006. The home building was insane...there is so much empty land to the east why is this land so valuable. But the memory I keep having is the men driving dump truck after dump truck knowing in a year or two these poor men will probably not be employed in the same position. It was not these drivers greed that caused this problem...but unfortunately some of these people may suffer.; November 04, 2006 6:39 PM
Anonymous said...: YES. I am 27 years old and have been putting away money for my retirement for 7 years now. My friends were all financing cars and paying cell phone bills while I was saving. My car has 205K miles on it but still runs great, looks good, and is 100% mine...paid for in cash several years ago. I do not owe anyone a single penny.

When the crash occurs I hope to buy my own home in an area built in the 50s or 60s once prices come down to reality. No POS that is 5000 sq ft. Something reasonable....3 bedroom, 2 bath, 2 garage....max 2200 sq ft.

Aside from my own reason I want to see our nation get back to normal where you get luxuries in life by doing legitimate work to EARN things instead of Ponzi scams like house flipping to make money, cause inflation, promote illegal labor, destory the environment, etc...

A housing crash will be very good for our nation in the long term.; November 05, 2006 7:37 AM
Anonymous said...: Yes. I am rooting for an EPIC HOUSING CRASH.

And it is not a stupid question.

I will weather whatever comes along with it.

The stress of the insane run up has been unbearable.; November 06, 2006 5:22 AM
Anonymous said...: bubbletrouble-

You said: "I'm wishing for a crash, but a long slow one so people can figure it out and get out before they get hurt".

This HAS BEEN, and continues to be, a "long, slow crash" in most areas of the country.

Here's the problem with your well-intentioned sentiments: Many people have NOT paid attention to the beginning phases of the crash, or have WILLFULLY DENIED THE REALITY OF THE CRASH THEY"VE BEEN WITNESSING.

The market in my area (Seattle), had all the hallmarks of a crash beginning LAST FALL- one year ago! PLENTY of time to get out while the getting was good. Now it is too late and some (not many) are STILL in denial.

So they're screwed now. What can you do? When people see price reductions galore, homes selling for 50-200K under asking, DOMs of over 90 days, all of which started a year ago in Seattle, and yet IGNORED that information or CHOSE to enter the REIC lala land drivel of "we're special, not here" when it's all happening under their noses...

It's been a long, slow crash til now. Those who saw it and accepted reality have been rewarded.

Those who chose to keep dreaming will be crushed now as the crash speeds up.

I guess, unfortunately, we can't all be winners in life.

Welcome to reality.; November 06, 2006 5:56 AM

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November 03, 2006

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