April 17, 2008

Recap the housing bubble and crash in as few words as you can


Here's a stab:

People got access to debt like never before and lived like they were rich.

People weren't rich.

96 comments:

Anonymous said...

Shit Happens

Anonymous said...

We're screwed

common sense said...

Uneducated poseurs were given seats at the adult's table.

Ed said...

They came

They bought

They foreclosed

Noodles the 2nd said...

Everyone's lying. Everybody's knows everyone's lying. Everybody winks. Everyone has their hands out.

DOPES said...

DOPES!!!

Agent 99 said...

Affordable monthly payment.

nepa gal said...

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.

Faramir said...

Americans came to believe that debt and wealth are the same thing.

Mark said...

Greed is good. Debt is good.

theloknesmonster said...

A few greedy people have ruined it for everybody...

Anonymous said...

C'mon, Give it a try...
Everybody's doing it.

No Job, No $$, No Problem.

David said...

US Housing Boom: 2000 - 2005
US Housing Bust: 2006 - ?

tangelo mozilo said...

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.

Keyser Soze said...

Gee, I'm smart!

Bitter Pennsylvanian said...

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?

Anonymous said...

Manufacturing left, lower wages, light at end of tunnel was train.

Bitter Pennsylvanian said...

Re: Housing Bubble

"Toll Bros. House, SUV, Trophy wife, Realty job-The Fool's Gold of today.

Laura'sBUSH said...

THE MUTHA OF ALL CLUSTERFUC#S!!

Anonymous said...

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.

dwr said...

Most people are A) greedy and B) stupid.

Andrew from Russia said...

The bubble's trouble is its being heavier than air.

CaliforniaHereIgo said...

DEBT = WEALTH

left over losers from 2000 said...

More suckers got screwed than the tech bubble.sucker born every minute.Get rich quick scheme gone bust.

Anonymous said...

Suckers reeled in and no way out.

Dny

Anonymous said...

Suckers always buy at the top.

Dny

Anonymous said...

Easy come, Easy go.

Anonymous said...

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

Anonymous said...

Collective blindness

Anonymous said...

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!!

LM said...

The housing bubble had nothing to do with housing.


(Dude.... you just blew my mind)

AZDavidPhx said...

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.

born to lose said...

F*ck The Pain Away.

Anonymous said...

Greed.

David in SoCal said...

oh crap......

Anonymous said...

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

devestment said...

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.

Anonymous said...

Too many lived like $348K/yr on $48K/yr.

Anonymous said...

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.

Anonymous said...

Greg Swann

Anonymous said...

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

gutless and lazy strikes back said...

Weak minded fools took the bait and enslaved themselves with debt because they are lemmings.

Frank@Scottsdale-Sucks.com said...

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.

ZZwcck said...

High profits back gauranteed!

-- I think that sums up the attitude everyone invovled had.

yasmin said...

they made NINJA loans: no income, no job, no assets.

Anonymous said...

They aren't making anymore land!

Just houses.

Anonymous said...

Mr. Green, meet Mr. Orange, Now go paint the town Red

RayNLA

Roscoe said...

"Suzanne researched this."

Anonymous said...

25% of all Californians started their own "real estate" business.

Anonymous said...

SUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAANNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!


RayNLA

deepcgi said...

Now, renters need to carry landlord application forms.

tater said...

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?

Scott said...

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.

Anonymous said...

The party's over!

-Sendemscreamin

Anonymous said...

Lever Up
Buy what's appreciating. Like Gold. Pray you sell in time.

SeattleMoose said...

oink OINK...yikes!!

Keyser Soze said...

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.

Buzz Saw said...

Bring the pain!

Anonymous said...

bunch of douchebags?

michael said...

FUBAR

LauraVella said...

Housing debit wipes you out.

Anonymous said...

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!

Jack Sprat said...

"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

Anonymous said...

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.

barney bubble said...

i am a stupid?

Anonymous said...

I give you: Casey Serin!

Anonymous said...

Greenspan: Volcker You Ain't.

Slacker said...

Oh well, not my money.

Perkins said...

Besides a lap dance, what else do I get for 20 bucks??

Anonymous said...

.



People lived beyond their means?



DUH!







.

The Riddler said...

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!"

serindippity said...

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

Paul E. Math said...

Your house is the biggest and worst investment you will ever make.

Anonymous said...

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

Expat said...

The feds made it too easy to borrow money, now it has to print more.

miles said...

We can do this. -Oh I love you...
DRAW up the contract Suzanne.

lean times strategy said...

Ramen noodles never go down.

miles said...

No pain- no gain-

miles said...

My wife is getting her realtors license-

miles said...

But I owe more than that

miles said...

What's my monthly payment

miles said...

We refied

miles said...

Were building....
Oh what are you building? You mean you are buying a new home from a BUILDER.....lol

miles said...

"I putting this sucker on the market...You son of a bitch-"Said my wife..

Paid Off said...

Americans don't undertand basic math.

or

Suzanne!

long beach,ca said...

common sense is not common

Anonymous said...

Poop happens.
Some you loose and some you really loose.

Anonymous said...

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.....

Anonymous said...

It's Suzanne's fault.

Anonymous said...

All the sheep followed trustingly the shepherd to the slaughterhouse.

Anonymous said...

Dept looks and smells like real money, but it is illusory

Anonymous said...

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.

Keyser Soze said...

Heckuva job, Suzanne.

Don't Waste Your $$ In Aliso Viejo! said...

Aliso Viejo, Orange County, CA: White-Trashville.

Anonymous said...

Financeocide.
Coconutz!

Anonymous said...

What do I care ? My Congressman better bail me out or I won't vote for them.