Here's a stab:
People got access to debt like never before and lived like they were rich.
People weren't rich.
April 17, 2008
Recap the housing bubble and crash in as few words as you can
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A time capsule of the greatest financial mania in the history of mankind, told in real-time by regular folks and patriots. May future generations better understand the madness of crowds, and how power and money corrupt.
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95 comments:
Shit Happens
We're screwed
Uneducated poseurs were given seats at the adult's table.
They came
They bought
They foreclosed
Everyone's lying. Everybody's knows everyone's lying. Everybody winks. Everyone has their hands out.
DOPES!!!
Affordable monthly payment.
How about a haiku????
House prices went up FAST.
Sheeple spent their fake money.
Now we are all screwed.
Okay, now in as few words as possible:
Greedy Americanos wanting granite countertops have destroyed the world.
Americans came to believe that debt and wealth are the same thing.
Greed is good. Debt is good.
A few greedy people have ruined it for everybody...
C'mon, Give it a try...
Everybody's doing it.
No Job, No $$, No Problem.
US Housing Boom: 2000 - 2005
US Housing Bust: 2006 - ?
Government "housing affordability" programs combined with human greed and vanity to drive up home prices.
The bubble collapses, and those who were disenfranchised by it are forced to help reflate it.
Gee, I'm smart!
I am wondering when people will wise up to this scam in the stock market where they publish positive news just before the big bad one.
The process is causing the market to go up for a few days, capturing all the investment money that was poured in around the world by silly people who think the market has "hit bottom" and then announcing that a big firm needs to write off more debt like the announcement this morning by Lynch and also including as an "aside" the fact that Citigroup must do the same thing. The result always wipes out the gain and the investors have lost all their money!
Great! Withholding the bad news is a crime isn't it? Or is it supposed to be this way so that the execs escape first?
Manufacturing left, lower wages, light at end of tunnel was train.
Re: Housing Bubble
"Toll Bros. House, SUV, Trophy wife, Realty job-The Fool's Gold of today.
THE MUTHA OF ALL CLUSTERFUC#S!!
A crazed horde of housing gamblers, flush with funny money, were frantic about missing the boat.
After they scrambled aboard they noticed it's name was Titanic.
Most people are A) greedy and B) stupid.
The bubble's trouble is its being heavier than air.
DEBT = WEALTH
More suckers got screwed than the tech bubble.sucker born every minute.Get rich quick scheme gone bust.
Suckers reeled in and no way out.
Dny
Suckers always buy at the top.
Dny
Easy come, Easy go.
I'll see if I can come up with something clever by the end of this. In 1995 I had a financial awakening; I've always been more frugal than most, but still, I had credit cards. Not many, and suited to the income I had, never mind that I knew the mall I worked in was closing. Then there were legal costs for a custody matter for a grandson. Still, I had run up debt.
And then, I couldn't replace my income. Bankruptcy loomed. Some of my spunk was underwater. I was tired.Trying to make a decision, one day I wrote down every financial detail of my life in the last ten years. I projected forward. I added up all costs, and figured out the final interest based on that one figure.Not on some supposed monthly fee. Boy, was that an eye opener. I knew compound interest added up to more than was said, but I didn't know how fuzzy the math was, so we couldn't figure it out.I figured rightly, there was no way I was going to replace my income for the foreseeable future. So, one decision made: declare bankruptcy.
Two, face the life I was going to lead. No credit. Minimal discretionary income, if any. Like a few bucks a month. Estate sales on afternoon of last day were to become my shopping outlet. Ten cent miracles happened. It's the blip of feeling we are after when we shop. Most needs can be met with second hand goods. Isn't a nice pan, second hand after a month or two? Polish the one you have.
Three. I realized I was fairly typical for my situation. Happened every day all over the country. But when we are forced to live on what we actually bring in, we have far less than we think, far less than advertising would visually suggest. Many (verging on most possibly, I don't think we know) are marginally broke.We probably have been since wages stopped going up roughly 30 years ago, and since we stopped saving. Being within a few paychecks of not being able to meet your obligations is a marginal life.
What could we do otherwise? Food put aside in form of canned goods, frozen foods, is putting aside savings in the form of food. Shoes and winter jackets for children bought on sale for year ahead, and paid for in full ahead is savings in form of clothing. A car which is paid for and well maintained on a cash basis is transport security savings. We used to have wisdom in how we managed our resources, all of which lends to security. I heard on news last night that we are outsourcing defense contracts to other countries. If that's not the most stupid assed thing I've ever heard of. Ask a citizen who hasn't been bought off whether that's a good idea. Money really messes with the mind.
We signed our own warrant when we decided there were no consequences.
grandma
Collective blindness
It's all a cycle- happened before - it will happen again!
Every 20 years, a new group of youngsters learn the hard way, by experiance!!
The housing bubble had nothing to do with housing.
(Dude.... you just blew my mind)
I wish I could fast-forward 30 to 40 years from now when all these folks want to retire and they don't have a dime because they devoted their lives to monthly payments on a house and never bothered to save.
F*ck The Pain Away.
Greed.
oh crap......
Economic Darwinism is at hand. America had a great run, but sadly, it has fallen into the abyss. Rugged individualism, personal responsibility and duty to country have given way to moral bankruptcy and the me me me generation. The system needs to correct and correct hard.
My father’s autobiography describes survival during the 1930’s. As a child, he and the other siblings would walk the tracks of the local railroad and gather up pieces of coal that had fallen from the coal car the previous day. That’s how they heated their house in the winter time. If they had no food, other relatives would take turns housing and feeding them in exchange for chores. Everyone pitched in and everyone eventually escaped the grinding poverty of that era.
It’s time for a new history lesson.
Sticks
Big government causes inflation by creating money through debit to lower their liabilities. Then inflation and bubbles remove money from the public perpetuating the slave welfare state. Repeat.
Too many lived like $348K/yr on $48K/yr.
As soon as I turn 21 I am going to a bar for a drink, then to a Countrywide for a home loan. Being grown up is so much fun.
Greg Swann
LM said...
The housing bubble had nothing to do with housing.
(Dude.... you just blew my mind)
I think Grandma hit the nail on the head.
Grandma said....
We signed our own warrant when we decided there were no consequences.
This is what the bubble(s) (housing or otherwise) is about. Live for today and screw tomorrow, because tomorrow never comes? (Tomorrow is knocking at the door)
JaneZ
Weak minded fools took the bait and enslaved themselves with debt because they are lemmings.
Tens of thousands in Scottsdale who got a major snotty attitude during the boom and now they're getting it rubbed right back in their faces as they say "would you like fries with that?" working in the McJobs program.
High profits back gauranteed!
-- I think that sums up the attitude everyone invovled had.
they made NINJA loans: no income, no job, no assets.
They aren't making anymore land!
Just houses.
Mr. Green, meet Mr. Orange, Now go paint the town Red
RayNLA
"Suzanne researched this."
25% of all Californians started their own "real estate" business.
SUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAANNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!
RayNLA
Now, renters need to carry landlord application forms.
Housing Bubble - Wife to Husband: Oh honey, thank you for this $800,000 mansion, and it's just for me!
Housing Crash - Wife to Husband: You sorry b*stard, I TOLD you to get THREE jobs. We're going to lose my house. Now, look what you've done! Aren't you ashamed of yourself, you sorry piece of shit?
Any of the following:
"Everything is NOT different now. You should have learned that during the Nasdaq boom."
"It's not what it's worth, it's what you can get for it."
"Timing is everything."
"Sheep and pigs get slaughtered."
"Read AND UNDERSTAND the fine print on ANYTHING you ever sign."
"Don't trust salesmen. Do your own thinking."
"There's no such thing as a free lunch [or SUV]."
"If [the increase in your home's value] is SEEMS too good to be true, IT PROBABLY IS."
"Stocks have a P/E ratio to tell you how expensive they are. Houses do too: it's the price/rent ratio."
And lastly--
"Location, Location, Location" was never repealed--it just took a break during the boom; and we can't tell yet whether it will reapply during the bust.
The party's over!
-Sendemscreamin
Lever Up
Buy what's appreciating. Like Gold. Pray you sell in time.
oink OINK...yikes!!
Grandma - I was engrossed by your essay. Thank you. Those moments of clarity are memorable, aren't they. I've had a few in my years.
Bring the pain!
FUBAR
Housing debit wipes you out.
Bullshit is bought and sold until someone finally realizes - not that it is actual bullshit - but that they cannot get someone else to buy it.
It's all bullshit and that's what our entire lives are folks!
"I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."
" Never spend your money before you have earned it."
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."
Thomas Jefferson
That said, the intrinsic value of homes didn't really change over the past several years, it's just that the bullshit was considered more valuable.
i am a stupid?
I give you: Casey Serin!
Greenspan: Volcker You Ain't.
Oh well, not my money.
Besides a lap dance, what else do I get for 20 bucks??
.
People lived beyond their means?
DUH!
.
Siamese Human Knot:
"If I can wiggle my ears, and if you are able to bend the fourth finger on your left hand just a fraction of an inch..." "You might strangle us all." "Releases Batgirl, it's the basic formula for escaping a siamese human knot...I just recalled it. Ready? Ready Robin?" "Ready." "I'm beginning to wiggle my ears under my cowl." "Alright, releasing my fourth finger." "I'm wigglin." "I've got it!"
1) Greenie, you did a heckuva job!!
2) IamFacingForeclosure.com, and "it's all good"
3) "Bubbles are for Bathtubs"
4) 30k millionaire
5) "liar loan"--a product, not a felony
6) PergGranitSteel
7) Flip This House
Your house is the biggest and worst investment you will ever make.
The media-consumption machine along with the rest of the US just bankrupted themselves.
... and the government doesn't want to feel left out.
- Globethistle
The feds made it too easy to borrow money, now it has to print more.
We can do this. -Oh I love you...
DRAW up the contract Suzanne.
Ramen noodles never go down.
No pain- no gain-
My wife is getting her realtors license-
But I owe more than that
What's my monthly payment
We refied
Were building....
Oh what are you building? You mean you are buying a new home from a BUILDER.....lol
"I putting this sucker on the market...You son of a bitch-"Said my wife..
Americans don't undertand basic math.
or
Suzanne!
common sense is not common
Poop happens.
Some you loose and some you really loose.
And after the Lord made the heavens and the earth, on the 7th day he rested.
And on the 8th day, he looked down at the world and said "Something is missing."
He spread his hands over the waters, and said "Let there be real estate flippers!"
And all the fish in the ocean rose up.....
It's Suzanne's fault.
All the sheep followed trustingly the shepherd to the slaughterhouse.
Dept looks and smells like real money, but it is illusory
It is a human curse, we usually hope that we will make it, that catastrophy is only for others we see on the TV set... Let's now also assume that climate change is not really a problem and wait for it not to exist and have any consequences, shall we.... the housing burst is nothing compared to what may well be comming in just a few years. A lot of houses will be lost but not because of a financial crash.
Heckuva job, Suzanne.
Aliso Viejo, Orange County, CA: White-Trashville.
Financeocide.
Coconutz!
What do I care ? My Congressman better bail me out or I won't vote for them.
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