"We had an artificial economy. There was all this wealth created in real estate, and it wasn't really created."
- Brad Geisen, founder of Foreclosure.com, September 2007
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September 15, 2007
HousingPANIC Quote of the Day
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Bush will be blamed
Many economists say the Fed, by cutting short-term interest rates to 1% in mid-2003 and keeping them there for a year, helped foster a housing bubble that is now bursting. In his book, which was largely written before much of the recent turmoil in credit markets, Mr. Greenspan defends the policy. "We wanted to shut down the possibility of corrosive deflation," he writes. "We were willing to chance that by cutting rates we might foster a bubble, an inflationary boom of some sort, which we would subsequently have to address....It was a decision done right."
He attributes the housing boom to the end of communism, which he says unleashed hundreds of millions of workers on global markets, putting downward pressure on wages and prices, and thus on long-term interest rates.
http://online.wsj.com/article/SB118978549183327730.html?mod=hpp_us_whats_news
HELLO? Founder of foreclosure.com. As in it is in his interest to have lots of foreclosures. As in he is not an unsbiased voice. Geez dude, it's like quoting Yun or Lereah.
Bush and Greenspan will be blamed for this.
I hope BB will do the right thing and raise the interest rates!
Be strong like Volcker.
Hillary will save our homes.
Anonymous said,
"HELLO? Founder of foreclosure.com. As in it is in his interest to have lots of foreclosures. As in he is not an unsbiased voice. Geez dude, it's like quoting Yun or Lereah."
So what? facts are facts, maybe the reason he founded his company was because he saw this coming and now he is salivating over the opportunities that are coming down the line. Actually if you think about it, this would be the best of time for people who know what they are doing, they can purchase these houses for pennies on the dollar, rent them to ex homeowners (who cannot longer qualify for a loan because subprime is no more) and wait for a couple of years for their asset to appreciate. Or how bout doing seller financing thus becoming the lender because these people can no longer get qualified because subprime is no more? The possibilities are endless.
Do you not want to admit the fact that Pancho Garcia was only wealthy with his house in Santa Ana because buyers were driving up prices by purchasing properties with no money out of their pocked because lenders such as New Century were willing to lend them $600,000 with no income verification? What increased Pancho's net worth was this ARTIFICIAL demand fueled by subprime lenders. Now that these lenders are no more, now that people are loosing their houses from left to right, now that the lending standards have become more restrictive, Pancho's house is depreciating faster than you can say $250,000.
http://www.ocregister.com
/news/santa-market-homes-1842817-
sell-real
"Anonymous said...
HELLO? Founder of foreclosure.com. As in it is in his interest to have lots of foreclosures. As in he is not an unsbiased voice. Geez dude, it's like quoting Yun or Lereah."
Ah but it is different this time. Real Estate never goes up, only goes down. Inflation will be 90%, everyone will be homeless. Dump your house now or you may never get rid of it. Gold will be $1000.00 an ounce etc. etc. etc.
This is what is constantly being said now. Just as wrong as the REIC pumping the exact opposite. Same effect, different direction - just as wrong.
The reality of markets is that Bears make money, Bulls make money, Pigs get slaughtered - in either direction.....I lived through the 80's and early 70's so I know a little something about these things.
You mean we were supposed to pay that debt back one day?
and so goes for anon 5:21:
Quoting this guy is like quoting Yun or Lereah. All 3 have an agenda. All 3 cannot be taken at face value with what they say.
I'm not saying I disagree with him, I'm saying you are all being hypocrites if you sheepleshly believe everything he has to say without questioning what his motives are.
Take a second and think, might help you.
inflation = wealth
Our fake economy is finally sputtering and will eventually die and need to be rebuilt. All thse worthless marketing chumps and other deadweight will lose their jobs. I still remember Sun Microsystems using Snoop Dogg as their spokesman. I'm sure many CEO's and CIO's think about Snoop Dogg when they are looking for a complex IT solution.
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