June 16, 2007

HousingPANIC Stupid Question of the Day

HP'ers - notice how people seem to be getting madder and madder at us as the housing ponzi scheme unravels, and they realize they're screwed?


And to think, it's just gonna get worse.

Are you finding yourself being smugly quiet at dinner parties lately as the homedebtors, REIC and failed flippers try to cheer themselves up that this is just a temporary blip?

Or are you letting it rip?


63 comments:

Frank@NeverColdCall.com said...

Nah, people around here seem to understand what's happening and understand that renting was the smart decision for me.

Of course, I'm in Orange County now, back in Scottsdale they still consider all renters to be common criminals and 2nd class citizens.

Anonymous said...

My CoWorkers hate me

Anonymous said...

I'm "letting it rip" like you wouldn't believe. I spoke with a friend the other day who was talking about bailing on her $1100/mo Lake Washington waterfront rental here in Seattle so she can buy. I tried telling her about the global credit bubble but I'm not sure she "got it" nor wanted to "get it". She said that it was "over her head" and she doesn't pay attention to stuff like that.

She is 41 BTW.

When I told her that I wouldn't even consider dating a FB because I'm not planning on ever marrying into 6 figures of unsecured debt she freaked and compared it to religion...like all that I told her about the bubble was like telling her about scientology.

She did say that she has friends that have had their houses for sale for a long time now but they aren't selling.

My reply..."No shit"

Anonymous said...

Yeah, talk to the seniors entombed in their homes by high taxes in Florida! What a way to live your last years!

kitchenstove said...

LOL, you know I was just thinking this very same thing when I was laughing at some of the many comments posted here lately that were obviously written by trolls. Unlike housing prices, the number of trolls who visit you seems to have increased by 30%! Steak sandwich indeed!

Anonymous said...

A 'Subprime' Fund Is on the Brink
By KATE KELLY
June 16, 2007
Concerned that an internal hedge fund at Bear Stearns Cos. wouldn't be able to meet a margin call, Merrill Lynch & Co., one of the fund's biggest lenders, seized $400 million of its assets and is preparing to auction them off.

The auction, in the coming week, could trigger the fund's dissolution -- the second blowup in recent months of a hedge fund that made dicey bets on the market for risky home loans, known as subprime mortgages.

Anonymous said...

I think we may have to go underground soon, live in the shadows until this blows over

London Stud said...

Was at a party recently outside of London. Leafy burb where average house price is nearly 1M pounds. Talk of crash and at best the "soft landing", and folks still want to buy here - right now... I can't believe it. And these are folks that look down their nose at ignorant Americans...

Anonymous said...

The people I know who didn't get out don't seem angry yet, just very frightened. None of my HPer friends rubs it in, it's really too sad and scary. Inventory here is unbelievably high and nothing is moving even at firesale prices.

SPECTRE of Deflation said...

Latest Bush on Immigration


From his speech today at the National Hispanic Prayer Breakfast:


There's a lot of emotion on this issue, and it makes sense to have people from around the country come and sit down with members of Congress to talk rationally about the issue.

Our responsibilities are straightforward — we've got to enforce the border, basic duty of a sovereign nation. We've got to create a lawful way for foreign workers to fill jobs that Americans are not doing. Our economy depends on them. And we must resolve the status of illegal immigrants already in our country without amnesty and without animosity, because that is the only practical way to fix the problem that has been decades in the making.

El Presidente' Jorge' is more full of shit than a Christmas Turkey. 6 long years he has knowingly left the border wide open in dereliction of his duties as President. I see he's still saying, "jobs Americans won't do", but it's jobs Americans won't do for the pay of an illegal jackass President.

Americans should not have to compete with illegals for jobs. F**king moron President!

Anonymous said...

In Atlanta nobody believes prices will fall. The more I look around the more I think they're right.

Inventory is at record highs right now, yes. But homes are still selling. I went to an open house 2 weeks ago. East Cobb home, built in '83, 5 bed/3bath asking $479K. Insane right? Checked on it today, it's sold. I don't know for how much, I'll have to wait until it closes to see, but it was on the market for only 60 so I'm guessing pretty close to asking price.

Housing-watch says median price has increased from $214K to $220K in the last 6 months. Condo prices have soared in the last 6 months too.

I thought maybe Home Depot's issues would hurt people's outlook since it's HQed here. Nope.

I thought maybe Florida's issues would spill into here. The opposite is happening. Flordia is losing people in droves and the ones leaving are moving here and buying homes.

My lease is coming up and I've started looking for alternatives. Rents have gone up since last year.

I'm wishing I was in Phoenix or Miami so I'd see this crash first hand, here it isn't happening.

SPECTRE of Deflation said...

Keith, you will love these comments from the complete moron Trent Lott. Dumber than a brick is all I can say!



Counsel of Trent

I'd say that Trent Lott was an embarrassment to the Senate GOP except for the fact that it was the Senate GOP that chose him to be their whip, so I'll just say instead that, judging by this report in the New York Times, he has, once again, made a fool of himself with remarks, that even by the abysmal standards of Senator Lott, stand out for their ignorance, dim-wittedness and faint suggestion of the bully:
Comments by Republican senators on Thursday suggested that they were feeling the heat from conservative critics of the bill, who object to provisions offering legal status. The Republican whip, Trent Lott of Mississippi, who supports the bill, said: “Talk radio is running America. We have to deal with that problem.” At some point, Mr. Lott said, Senate Republican leaders may try to rein in “younger guys who are huffing and puffing against the bill."

Anonymous said...

I love you Keith ;-)

Paul E. Math said...

I feel like it's a really tricky subject and whenever it comes up I walk on eggshells. I feel the need to be honest and express the conclusions that my analysis leads me to draw yet I don't want to be pushy about it.

I have a coworker who just bought in the Boston area despite all the information I gave him as to why that could be a very poor financial decision. It seemed like his main reasons were family pressure and the appearances of owning v. renting. Now that his offer has been accepted and it's too late to turn back I no longer feed him the bad news about housing - I figure that would be in poor taste and can't do him any good now anyway.

I have other friends who just bought too, despite my warnings, and now I have to plaster on a fake smile and be a good friend as I watch them flush their financial future down the toilet.

So the answer is that I don't actually talk about the bubble much anymore, in the interest of decorum. It would be like talking about the perils of smoking to someone who has already contracted lung cancer.

Anonymous said...

Anonymous said...
I'm "letting it rip" like you wouldn't believe. I spoke with a friend the other day who was talking about bailing on her $1100/mo Lake Washington waterfront rental here in Seattle so she can buy. I tried telling her about the global credit bubble but I'm not sure she "got it" nor wanted to "get it". She said that it was "over her head" and she doesn't pay attention to stuff like that.

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

You need to deprogram her! Use the discovery method... tell her you'll agree to her purchase if she can get a mortgage from Merit Financial.

When she learns they were a pump-and-dump operation, are no longer in business, wrote a lot of sh*tty mortgages, and that thue guys who ran it aren't in jail, but gasp, started other mortgage lending companies and still active in the market, she might just begin to see the light that there's a hell of a lot of crap mortgages in Seattle market. You can also show her how the ten year bond has spiked up recently meaning the 30-year fix is going up too and housing affordability will fall.

westwest888 said...

Oh man, I've got a good one. I was at a recruiting event and one of my coworkers was envious of a former colleague and his wife because of their position in our industry. He exclaimed, "They are doing so well, they've got the house in this neighborhood, the vacation house in Bahamas, and [some other house]." I threw up a red flag, and argued "Or they're swimming in debt on a few dubious purchases."

People just don't get it. They equate taking out 3 mortgages with being rich.

SeattleMoose said...

Stupid is as stupid does.....I hope all the infestors, equity locusts, and Trump wanna-bes all end up in soup lines.

Have a nice day.

K.W. - Southern Ca. said...

Let's not forget the new wave of baby boomers that will be retiring soon.

Most will be down-sizing as well.
They'll need their money for more
important things, like ever-increasing health-care expenses (another disaster all in itself).

Result - more houses on the market.

Roccman said...

"I think we may have to go underground soon, live in the shadows until this blows over "

Exactly!!!

K.W. - Southern Ca. said...

What a shame. So much ignorance, insecurity and false-pride among some house debters to label another
group of people as 2nd-class, 3rd-class or whatever.

They can believe what they want to believe - perhaps having to eat their very own words as
the housing market continues it's downward spiral.

What concerns me - inflated housing aside - are the other problems (i.e. over-priced health-care costs, low wages, continued out-sourcing) that are helping to
accelerate the collapse of our economy.

~~~

Nah, people around here seem to understand what's happening and understand that renting was the smart decision for me.

Of course, I'm in Orange County now, back in Scottsdale they still consider all renters to be common criminals and 2nd class citizens.

K.W. - Southern Ca. said...

This is such a heated topic, and I've read alot of posts about this - so here's my response as well:

Illegals need to go home, and their own country needs to start building up the economy there to provide a better way of life.

Our economy here is sinking, and the last thing we can afford to do is bring in more and more cheap labor to force wages even lower.

The problem is, too much business here has relied on cheap exploitive labor to keep costs as low as possible - so an unhealthy dependancy has been created between business here and hispanic labor.

The hispanics know this, so the longer we keep this up, the more dependent we become on them.

The blame lies with our government, and to some extent our combined complacency to the issue - until it started impacting our immediate neighborhoods.

It's wrong to put our own citizens in the streets while business provides more and more job opportunities to the illegal work force.

Just another reason - among the many - why this president should have been impeached long ago.

~~~
SPECTRE of Deflation said...
Latest Bush on Immigration


From his speech today at the National Hispanic Prayer Breakfast:


There's a lot of emotion on this issue, and it makes sense to have people from around the country come and sit down with members of Congress to talk rationally about the issue.

Our responsibilities are straightforward — we've got to enforce the border, basic duty of a sovereign nation. We've got to create a lawful way for foreign workers to fill jobs that Americans are not doing. Our economy depends on them. And we must resolve the status of illegal immigrants already in our country without amnesty and without animosity, because that is the only practical way to fix the problem that has been decades in the making.

El Presidente' Jorge' is more full of shit than a Christmas Turkey. 6 long years he has knowingly left the border wide open in dereliction of his duties as President. I see he's still saying, "jobs Americans won't do", but it's jobs Americans won't do for the pay of an illegal jackass President.

Americans should not have to compete with illegals for jobs. F**king moron President!

turdly said...

In the Kabala it mentions [yeh, I've read them all, I still don't get it]; The mind is a vessel, you can only fill it to the top. Much like a cup of coffee, if you overfill it, you make a mess. Some vessels are larger than others.

That statement is probably the most profound thing I have ever read. It has finally let me walk away from someone being stupid without my feeling as if I must edumacate them.

here are some examples;

I let it rip vehemently. It has;
saved a friend 200k on a house in the OC/LA area. I had to physically threaten him for litening to Realtors there telling him 'BUY NOW! if what your crazy friend [me] was telling you were true, these people wouldn't still be asking $800k for this house!' He was looking at homes that appeared to be sex dens for bears. He held out, found a home where the owners had bought in 1999 at 300k and now needed to bail. House listed at 895k he said 625k, they said yes because of his cash and the new job in Denver starts at the end of the month. It's a house for one of his kids to live in.

So, my very serious rant got him a beautifull home, nicest on the block and saved him a crap load.

My sister wouldn't listen and is losing her house in AZ

My brother wouldn't listen and he has a 1000 monthly adjustment hitting him at the end of this month.

One of my friends who bought a commercial building didn't listen, he's got a reset AND a two years of interest prepayment penalty.

My wife listened but didn't really care. I told her 2 years ago that the guest house would be a 50% loser if we ever had to sell it. We bought it anyway as we can afford the loss and are never selling anyway.

Friend who saved 200k on house has about 5 mill in the bank, but slightly goofy, yet he paid attention and took my expert opinion.

sister is beautician, listened to boyfriend

brother is truckdriver, listened to drunken cowboy friends.

wife is wife, told me exactly what to do and when to do it.

commercial guy needs me to lend him 90k. The mortgage is choking him to death.

I know we never talk about it here, but holy crap, commercial is insane! any turd that has ever worked on a car is getting a 1.1million loan to build a garage! NO job history, so little down it's basically no down, just build the place! My town has more new vacant commercial units than we do older units with tenants.

Anonymous said...

hmmm so nobody is buying homes, prices **will** (not have) tumbled. Yet everyone has a story of a friend buying.

So how can that be? How can nobody afford to buy yet everyone has a friend or two who just bought?

Anonymous said...

Baby boomers retiring will have no effect on overall inventory. They will sell one big home and buy a smaller home/condo/townhome. And this will be happening just as the boombers' kids will be having their 2nd or 3rd kid and will need to move from the small home/condo.townhome into the bigger home.

I know this makes no sense to those of you renting 1 bedroom ghetto apartments. You will be doing that for the rest of your lives. For the other 99% of the population, that's how things work.

belchorama said...

I gotta echo Paul E. Math and maybe turdly on this one. Have some friends that cornholed themselves with a cookie-cutter "investment home" in ID. I tried to feed them some information, but it al just ricocheted right off of their eyeballs. Now it doesn't do any good so I don't try to tell them when I read in the ID Statesman that there's a huge inventory of homes for sale and 2/3rds are investor-owned. People seem to get fixated on these purchases pretty quickly, and then trying to convince them it's a bad move is like telling a spoiled 10-year-old that he can't have that XBox.

SHAKSTER-talking to himself at the dinner table said...

Dinner Party? They don't invite me to stinking dinner parties!Ah shuks. Anyway,there's always the Reverse Mortgage,for the desperate FB over 65 now being paraded as a humanitarian,and caring way to escape your blown retirements.Ahhhh,thats so sweet,and the brokers gets a wheelbarrow of dough,and the banks get the house,so nice of them.
Just think ,now you know how to screw your children out of their inheiritance with their approval of course.But a more likely scenerio is that you won't die soon enouph,and you will be tossed out on your arses.Inflation will get us all.Dinner Speak.

Greg Swann said...

But We're in a bind,uh I mean they are in a bind,it's the right thing to do.

Lone said...

I took record low interest rates and used it to get a professional degree that is giving me quite good ROI.

Others bought inflated illiquid assets, hoping to ride the "appreciation train" to riches.

Some people aren't happy about that.

Anonymous said...

like all that I told her about the bubble was like telling her about scientology.

Funny you say that.

Scientology Management technology is all about not paying for anything on credit. If you can't afford it, don't buy it.

Anonymous said...

"I'm wishing I was in Phoenix or Miami so I'd see this crash first hand, here it isn't happening."

You would be disappointed. Phoenix continues to grow at astounding rates. Although there is lots of inventory, houses are selling and increasing in price.

The ones going down the tubes are foreclosures, but there are really not that many.

If there is a crash in Phoenix, only the idiots who shouldn't have bought a house in the first place are the ones getting hurt.

The economy in Phx is very strong and unemployment is under 3%

Anonymous said...

I, for one, am letting it rip. I bring up the housing mess at every opportunity. I consider nothing less than just paybeck for all the smugness I had to endure from those delusional idiots during the boom, the same people who trumpeted the internet stocks before that bubble bursts, using the same old tired cliches about how fundamentals don't matter anymore. I believe it our duty to ridicule the fools in an attempt to prevent yet another bubble in another asset class. Besides, it's soooo much fun!

Anonymous said...

Ya sure there are people getting crunched on housing because of stupidity.

But there are also millions of people who are not hurting and are not affected in the least by other people's stupidity.

In my community, there are only 2 houses for sale out of 125. Houses here are on the market for about 25 days. The price has not gone down.

Anonymous said...

True Story

I live in Southern California. A co-worker of mine often boasted of his many different properties. He would make sure everyone at work knew about his "wealth". The worst episode was when he pulled me aside one day and showed me his net profit on one of his flipped properties. He showed me a bank stub for $201,000 on one of his flipped properties and would ask me "How's the renting life!" Fast forward to April 2007. One day I get a frantic and panicked phone call from him and when I answered the phone, it sounded like there was a death in the family. He told me he was in deep trouble and was on the brink of financial ruin. He was about to go under on one of his properties. He has no money to make his new fully adjusted indexed payment. He knows that since he cant make these payments, he'll end up in foreclosure, his credit will be ruined, and the bank will sue him for the difference for the loan that he owes versus the sale of the home. And as you are all fully aware, home values have gone down. Not only this, his solution is to get an expensive lawyer to try to prove he didn't know what he was signing. But I dont think this will hold up very well in court as he is an educated individual with a very well paying job and it will be made known in court that he is known as a "flipper!" At this point, he is no longer boasting about his properties and is now embarrassed and is losing his money to a lawyer who is laughing at the situation.

Sincerely,
Guy laughing at the Flippers!

fcuk congress said...

After hundreds of illegal aliens were rounded up at a meatpacking plant in Iowa, hundreds of Americans were lined up to take back their jobs the next day. Why weren't the Americans working there in the first place? The meatpacking plant was paying slave wages to illegal aliens who were also on welfare and living 20 to an apartment. I guess Americans can compete with illegal aliens if we're willing to live 20 adults to each dwelling.

stuckinthecity said...

I have had many people do 180 degrees and tell me how right I am.

Anonymous said...

You need to deprogram her! Use the discovery method... tell her you'll agree to her purchase if she can get a mortgage from Merit Financial.

I actually was a little harsher.

I told her that if she buys a condo now that I'll never speak to her again. I expect that I'll never hear from her again.

Do I care?

No.

I certainly won't be lending a dime to an FB when the shit hits the fan. At least none of my family is an FB. And I have plenty of friends that still rent.

Why the hell should we stay quiet about this? This is the time to rub their greedy little pig noses into the shit that they brought upon themselves.

Anonymous said...

omfg god keith watch this...

http://tinyurl.com/2djfgh

Anonymous said...

"Yeah, talk to the seniors entombed in their homes by high taxes in Florida! What a way to live your last years!"

What do you call BROKE retirees?
Ans: Loyal democrats. ugh !

And just wait for the blowback towards the babyboomers from the GenX/Y crowd. Can you say "Buh-bye medicare, and medicade".

Anonymous said...

"I know this makes no sense to those of you renting 1 bedroom ghetto apartments. You will be doing that for the rest of your lives. For the other 99% of the population, that's how things work."

First, how about getting your head out of your ass.

Second, it may not have occurred to you but some of us renters are loving life, and have been making money hand over fist by investing in the markets instead of being home "owners". HAR HAR HAR

burn baby burn said...

I like to stay silent because I find it so much fun when people make my arguments for me.

Anonymous said...

Anonymous said...
hmmm so nobody is buying homes, prices **will** (not have) tumbled. Yet everyone has a story of a friend buying.

So how can that be? How can nobody afford to buy yet everyone has a friend or two who just bought?

June 16, 2007 4:00 PM
------------
Its called sub-prime fog a mirror underwriting standards babie. But FYI - I do not consider that purchasing a home, that's just renting money from the bank until the toxic waste explodes & consumes the "buyer"

Anonymous said...

Bottom line:

We're exporting prosperity (good jobs)

And then turn around and import poverty (illegals in bad jobs)

And the Republicans think this is the magic of capitalism.

Jobs americans won't do? BS. Teenage unemployment is at 40-50 year highs.

Jobs americans won't hire americans to do? You betcha!

Anonymous said...

The Republican whip, Trent Lott of Mississippi, who supports the bill, said: “Talk radio is running America. We have to deal with that problem.”

Harde har har.

Hey Trent: you can start by apologizing to William Jefferson Clinton.

On your knees! Now!

That man deserved a blowjob every damn day he had to put up with your types and the raving troglodytes of talk radio you so slimily encouraged.

At some point, Mr. Lott said, Senate Republican leaders may try to rein in “younger guys who are huffing and puffing against the bill."


In the 1930's the German Uber Industrialists thought the brownshirtted thugs of the fascist movement as useful tools to beat up on the liberals and socialists, who wanted things like worker's rights and better pay and civil rights.

Funny how the thugs turned the tables, and made the industrialist capitalist class their own tools.

Northern VA bubble sitter said...

To people thinking about buying I always recommend Patrick.net and this website.

To the desperate home debtors I pretend to agree with them when they say the real estate market in Northern VA/DC will turn around cause they say they have read it in the papers. Its never good to be calling your friends fools even when they have been fools.

Phoenix Renter said...

True story: Last weekend, my wife and I were at a dinner party in Northeast Scottsdale (McD Mtn. Ranch, for those familiar), at my wife's friend's house. I have been to their parties before, and ALWAYS get into this conversation with one of the 7-10 realtors and/or mortgage brokers there:

TARD: So you guys rent in Phoenix?

Me: Sure do. We have a sweet two-bedroom loft just north of downtown.

TARD: You know it's a great time to buy. I can get you a great mortgage/find you a great property up here in Scottsdale, which is SOOOO much better than icky Phoenix.

Me: Actually, I sold my Scottsdale townhouse a couple years ago.

TARD: Oh.

Me: Yeah, I made a nice sum and dumped all that cash into some stocks that have done very well for me, like Apple. But I've divested and am fully in cash now - waiting to see which way things go.

TARD: Oh, really?

Me: Yeah, it's funny. There's a beautiful home a mile north of us that's been on the market for a few months. Me and (wife) have looked at it a few times, but at $650k, we think it's about 30% overvalued. When the market actually tanks, we'll make an offer near $375k and see what happens.

TARD: That's a real low-ball offer. You're never going to get that.

Me: If not that house, another one like it.

TARD: Well, I can get you a great mortgage when you do.

Me: No thanks. We're going to pay cash when it happens.

Stunned look on TARD's face.

The sad thing is, one of the couples that was usually at these parties wasn't there this time. Apparently, since they got married a few months ago, they've been having real problems, because the wife (who is a bonafide 10 - no surgery, nothing fake, a legit 10) realized that her MB husband's house of cards is collapsing - he's gone from making $15-20k a month to $2-4k a month. She obviously didn't marry for love, and he's retarded. Another sad Scottsdale love story.

I also love rolling up through these neighborhoods in my 7-yr old PAID FOR GMC (with only 54k miles) and laughing as the residents try to give me their best this-is-a-BMW -only-neighborhood-good-sir looks. Classic.

K.W. - Southern Ca. said...

You stated a very important fact
that suckered so many people into
house debtership ... "the appearance of owning vs. renting"

Your friends who bought into the
housing scheme (and anyone else) don't own anything *until* they've paid off their mortgage in full.

They are renters also - with more costs, so all the jabs I've read against those who rent can be directed back to themselves as well.

"Home Ownership" has been an over-used and incorrect term in the housing industry.

"House Debtership" - modern day serfdom - is the correct nomanclature.


Paul E. Math said...
I feel like it's a really tricky subject and whenever it comes up I walk on eggshells. I feel the need to be honest and express the conclusions that my analysis leads me to draw yet I don't want to be pushy about it.

I have a coworker who just bought in the Boston area despite all the information I gave him as to why that could be a very poor financial decision. It seemed like his main reasons were family pressure and the appearances of owning v. renting. Now that his offer has been accepted and it's too late to turn back I no longer feed him the bad news about housing - I figure that would be in poor taste and can't do him any good now anyway.

I have other friends who just bought too, despite my warnings, and now I have to plaster on a fake smile and be a good friend as I watch them flush their financial future down the toilet.

So the answer is that I don't actually talk about the bubble much anymore, in the interest of decorum. It would be like talking about the perils of smoking to someone who has already contracted lung cancer.

June 16, 2007 1:51 PM

K.W. - Southern Ca. said...

The housing crisis is not confined to any class, and regardless of education, people got (and are still getting) suckered.

Anonymous said...
True Story

I live in Southern California. A co-worker of mine often boasted of his many different properties. He would make sure everyone at work knew about his "wealth". The worst episode was when he pulled me aside one day and showed me his net profit on one of his flipped properties. He showed me a bank stub for $201,000 on one of his flipped properties and would ask me "How's the renting life!" Fast forward to April 2007. One day I get a frantic and panicked phone call from him and when I answered the phone, it sounded like there was a death in the family. He told me he was in deep trouble and was on the brink of financial ruin. He was about to go under on one of his properties. He has no money to make his new fully adjusted indexed payment. He knows that since he cant make these payments, he'll end up in foreclosure, his credit will be ruined, and the bank will sue him for the difference for the loan that he owes versus the sale of the home. And as you are all fully aware, home values have gone down. Not only this, his solution is to get an expensive lawyer to try to prove he didn't know what he was signing. But I dont think this will hold up very well in court as he is an educated individual with a very well paying job and it will be made known in court that he is known as a "flipper!" At this point, he is no longer boasting about his properties and is now embarrassed and is losing his money to a lawyer who is laughing at the situation.

Sincerely,
Guy laughing at the Flippers!

K.W. - Southern Ca. said...

You overlooked the fact that what we're witnessing is everyone's problem to some degree.

We think so short term in this country, and that is why we're in
the fix we are now.

Anonymous said...
Ya sure there are people getting crunched on housing because of stupidity.

But there are also millions of people who are not hurting and are not affected in the least by other people's stupidity.

In my community, there are only 2 houses for sale out of 125. Houses here are on the market for about 25 days. The price has not gone down.

Anonymous said...

Anyone over 30 who rents is a loser. Might as well live at home with mom.

good ship lollipop said...

A REO in my sister's neighborhood was listed at $224K last summer and the price was dropped to $169K and it still hasn't sold. It looks like the bank took it off the market. She didn't even know about it and was shocked when I told her.

area 51 said...

My co-workers say, "WHEN ARE YOU BUYING A HOUSE?!!!" With venom and vitriol.

Anonymous said...

If it comes to my attention, I try to dissuade coworkers from becoming homeowners. One coworker heard that it's a buyers market now, so I showed Shiller graphs, and the NAR ad and its modification "It's a great time to make a comission" - it didn't help, so I keep quiet about it. It's their money they loose.

K.W. - Southern Ca. said...

More house debters will most likely rent to keep their costs down and weather the economic storm that is coming ... are they also "losers"?

Renting, house debting ... whatever works for you ... doesn't make you a winner or loser either way in the larger scheme of things.


Anonymous said...
Anyone over 30 who rents is a loser. Might as well live at home with mom.

K.W. - Southern Ca. said...

I just hope it doesn't pull down
the entire economy.

We'll all need to share the burden
of this problem to some degree - anyone besides the top wealthy %1 -
who are already moving their money
out of here.

SeattleMoose said...
Stupid is as stupid does.....I hope all the infestors, equity locusts, and Trump wanna-bes all end up in soup lines.

Have a nice day.

Anonymous said...

"Anyone over 30 who rents is a loser. Might as well live at home with mom. "

Im one of those "loser" renters, and I would bet you that my bank acct FAR BIGGER than yours from all the investing and money Im saving by being one of those "loser" renters.

So yeah, Im laughinig with ya chump, ALL THE WAY TO THE BANK.



Snicker.

Anonymous said...

"Im one of those "loser" renters, and I would bet you that my bank acct FAR BIGGER than yours from all the investing and money Im saving by being one of those "loser" renters. "

It has been my experience that anyone who uses the term "I would bet you" usually would lose that bet. If you truly have a bank account that big there is no need to brag about it. You are no different than the small dicked asshole driving a Hummer.

Stephen said...

"Steak sandwich indeed!"
--------------------------
I remember that post. What a freak. Who eats steak on a sandwich, unless it's a "steakum" or a "cheese steak" (which is really an equivocal use of the term "steak")? Or maybe it's a regional thing . . .

Anonymous said...

After reading the post from the person in Atlanta, I have some news for all the folks that think Phoenix is imploding - Don't believe the hype folks. This is the exact opposite of the "housing will make you millions" hype. Remember Newton's law? The only areas that have been hurt are the outlying areas - period. Any areas with good transportation, job base and those other things that people want - are still going up. Maybe not 50%, but they are definitely going up. I have been here since 1998, and I will tell you, if you look at same house sales, basically here is what is going on. House was purchased in 2000 for $150,000.00. House is sold in today's "deflating" market for $315,000. Sits on the matket for 45 to 60 days. Not bad for something that all I had to do was live in and enjoy. The people that bought in 05 or 06 even, if they bought the house right (20 to 10% down, no stupid exotic mortgage, just plain jane ARM) gained 45 to 50% have lost 5% maybe 10% at most. Still not a bad return on your money in my book....What stock gives you a return like that, not many. Condos are a different beast, and BTW they are still doing well here (can't figure that one out). Bash the market all you want, but there is no more land being made, and more people being made everyday. Also, most renters if given a choice would pay a premium for a house over an apartment any day of the week for the obvious reasons.

Disclaimer: I am NOT a Realtor or Mtg Broker, just a guy who sees what is going on through all the hype.

put away the crack pipe said...

Anonymous said...
After reading the post from the person in Atlanta, I have some news for all the folks that think Phoenix is imploding - Don't believe the hype folks.

...

Bash the market all you want, but there is no more land being made, and more people being made everyday. Also, most renters if given a choice would pay a premium for a house over an apartment any day of the week for the obvious reasons.

Disclaimer: I am NOT a Realtor or Mtg Broker, just a guy who sees what is going on through all the hype.

June 18, 2007 7:10 PM

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You mean they're running out of desert in Arizona? Everyone wants to live in hellish 120 degree heat? LOL

Also, the only renters who would be willing to pay a premium to homedebt vs. rent an equivalent home are the Greater Fools who have bought over the past three years. Most of them are now facing financial catastrophe.

Chris said...

I am renting a nice townhome for $1500.00 where as If I own it my mortgage would be $3100.00/month (400K townhome in NJ). Isnt this how it is supposed to be. Renters enjoy. Let the suckers loose their sleeps with their dept and dead wood which is loosing value. every one of these monkies deserve to go in foreclosure and I am glad that its happening now and faster than anticipate. Cheers

wiserenter said...

"Anyone over 30 who rents is a loser. Might as well live at home with mom. "

--

Let's see... I'm renting a decent 2-bedroom house for $950/month (the same house would cost triple that to buy), driving a used car that's all paid for, and no credit card debt. By avoiding the three biggest money traps in modern society, I and others like me are light years ahead of the sheeple.

So let me ponder your pearl of wisdom... hmmm... I think I'll remain a "loser."

kitchenstove said...

Stephen said...
"Steak sandwich indeed!"
--------------------------
I remember that post. What a freak. Who eats steak on a sandwich, unless it's a "steakum" or a "cheese steak" (which is really an equivocal use of the term "steak")? Or maybe it's a regional thing . . .

LOL it was funny, and I think they did mean to say a cheese steak or steak and cheese. What's even funnier is they seemed to believe that buying a $6 steak and cheese was worth bragging about or a real indication of their financial state.

kitchenstove said...

LOL, well actually it does speak of their financial state, but bragging about eating chese steaks is no different than bragging about eating Ramen.