tag:blogger.com,1999:blog-18675105.post6905736634704697732..comments2023-12-30T10:06:37.450+00:00Comments on HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008: HousingPANIC Stupid Question of the Daybloggerhttp://www.blogger.com/profile/06585266242070350399noreply@blogger.comBlogger45125tag:blogger.com,1999:blog-18675105.post-51141553769968376912007-04-24T08:05:00.000+01:002007-04-24T08:05:00.000+01:00The fact that housing costs, most households' #1 e...<I>The fact that housing costs, most households' #1 expense, aren't in CPI (anymore) is a joke. CPI is a worthless number, and the government knows it.</I><BR/><BR/>It may be a joke, but it's NOT funny. Your yearly raise is based on that worhless number.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-25401161662040392662007-04-24T07:56:00.001+01:002007-04-24T07:56:00.001+01:00How's that crash coming so far renters? I don't gi...<I>How's that crash coming so far renters?</I> <BR/><BR/>I don't give a shet if prices never "crash". I am just fine living in a house that is subsidised 50% by my landlord. I have lots of free cash and time to spend it, so go paint the banks house this weekend and shut up.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-62177985636702957182007-04-24T07:56:00.000+01:002007-04-24T07:56:00.000+01:00It is certainly a sign of desperation to look at S...It is certainly a sign of desperation to look at San Francisco, and say this reflects a continuation of the housing boom. That city has been in a housing slump for a long while, and any recover yoy compares to bad years before. The city continous to lose population, as does the state, so I would not get my hopes up over such an anomoly.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-29763851981025646332007-04-24T07:46:00.000+01:002007-04-24T07:46:00.000+01:00Because the reporters are stenographers for the go...Because the reporters are stenographers for the government, and they automatically print whatever the government thinks they should. When the entire economy is running on borrowed money -- mainly home equity loans -- you do not makes waves. Especially when all of your advertising dollars are coming from the multitude of creative mortgage scams that are everywhere.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-56235033189646645302007-04-24T04:25:00.000+01:002007-04-24T04:25:00.000+01:00Ronjon 27 points out that the price of higher educ...Ronjon 27 points out that the price of higher education is way up. It is up for the same reason that home prices went up. Free money. Colleges can raise tuition with impunity because students can borrow without limitation in the huge student loan market. Lenders have no risk because the gov't guarantees repayment of the loan. This is a bubble too. But there is no asset involved, just a hope of an income sufficient to repay the debt. A hope that may or may not come true. How many massage therapists do we need?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-49356005305594954772007-04-24T03:34:00.000+01:002007-04-24T03:34:00.000+01:00"Younger folks, you are getting shafted royally!....."Younger folks, you are getting shafted royally!..."<BR/><BR/>I have been trying to prepare for this since I was probably 16 and am going to be 36 this year. Whenever I bring this up to my peers, I get discounted.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-6247933691521493322007-04-24T03:28:00.000+01:002007-04-24T03:28:00.000+01:00Hot off the presses..."Mortgage 'meltdown' hits au...Hot off the presses...<BR/><BR/>"Mortgage 'meltdown' hits auto sales: GM's Lutz"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-88856935308446260412007-04-24T03:26:00.000+01:002007-04-24T03:26:00.000+01:00All in increase in price means is that your proper...All in increase in price means is that your property taxes went up.<BR/><BR/>You can't trade up to a bigger house, because if yours went up, it means all the other houses in your city went up too.<BR/><BR/>All an increase in value means is that you can take out home equity lines of credit, and as Suze Orman has correctly pointed out, they're even worse than credit cards.Frank Rhttps://www.blogger.com/profile/07625929422222490759noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-39412324193494112592007-04-24T02:37:00.000+01:002007-04-24T02:37:00.000+01:00While I have never been a big fan of bananas, gas ...While I have never been a big fan of bananas, gas appears to be way too cheap if the hordes of dorks bouncing around our local river (polluted, btw) on jet skis or roaring up and down in twin inboard ego machines this weekend is any indication.<BR/><BR/>But the answer to the original question may be that those who write the “news” already own (or make payments on) homes, so report the increase as good news because, for them, it is. As the price of fuel, food, and other non-shelter necessities increases, it is seen as a universally bad thing – I took my kids out for a banana split and had to put gas in my Hummer too… poor me!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-23145954267802172582007-04-24T02:25:00.000+01:002007-04-24T02:25:00.000+01:00Well said, ronjon. The reason we think of house p...Well said, ronjon. The reason we think of house price inflation as a good thing is that we think only of ourselves.<BR/><BR/>Our self-esteem is so dependant on our financial success that we are blind to who is hurt in the process. When someone tells us that we are $200k richer we feel really good about ourselves. We have almost 70% home-ownership so we have a lot of people feeling really good, feeling too much joy to consider the unintended consequences.<BR/><BR/>Much as we may think of ourselves as being very broad-minded and altruistic, it's really just so much shallow, pablum-puking, knee-jerk liberalism.Paul E. Mathhttps://www.blogger.com/profile/03719759088047080921noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-6645264796915255412007-04-24T01:23:00.000+01:002007-04-24T01:23:00.000+01:00torjusgaaren said...Because you can't refinance a ...<B>torjusgaaren said...<BR/><BR/>Because you can't refinance a banana. </B><BR/><BR/>Huh? You mean I CAN'T take out a BELOC (*banana equity line of credit*) to get at all that equity I've been building in the thing? You're shitting me, right? Damn....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-78725501668866780012007-04-24T00:09:00.000+01:002007-04-24T00:09:00.000+01:00Because houses are typically viewed as investments...Because houses are typically viewed as investments, not expenditures or consumable items. It is also highly unlikely that I can buy $300,000 worth of bananas without putting down any of my own money, nor would I want to.<BR/><BR/>Also, I don't live in a banana.Chrishttps://www.blogger.com/profile/10586722597797330208noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-29986579957287375002007-04-23T22:54:00.000+01:002007-04-23T22:54:00.000+01:00You boomers are going to have a very poor quality ...You boomers are going to have a very poor quality of life when you really need it because of your selfish trans-generational subsidies. Guess what, it works both ways!!!! When you are old and feeble, we are not going to take care of you. Don't you wish you lived in a culture that valued it's senoior citizens! HAHA - You Don't lolololAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-11048763909420714872007-04-23T22:47:00.000+01:002007-04-23T22:47:00.000+01:00I detect a banana-creme-puff bubble. Big time!I detect a banana-creme-puff bubble. Big <I>time!</I>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-11550972413857626562007-04-23T22:46:00.000+01:002007-04-23T22:46:00.000+01:00Simple: increased paper wealth (housing ATM) allow...Simple: increased paper wealth (housing ATM) allows people to buy gas, go to the store, and purchase bananas to put in their houses. Other increases are bad because we get fewer bananas.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-77560846021271762532007-04-23T22:41:00.000+01:002007-04-23T22:41:00.000+01:00RonJon 27 ...you hit the nail on the head!RonJon 27 ...you hit the nail on the head!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-83002037558008867542007-04-23T21:54:00.000+01:002007-04-23T21:54:00.000+01:00Let's face it. Nobody gives a $h** about what hap...Let's face it. Nobody gives a $h** about what happens to you if you are under 30, and most people who are affected negatively by rising house prices are under 30. You are just a spoiled puke who had the world handed to you.<BR/><BR/>Nobody gives a $h** that you have to pay 20 times what they did for an education and you have $50k in debt before you even start working for real.<BR/><BR/>Nobody gives a $sh** that you are going to be left holding the bag paying for the current housedebtors' retirement as Social Security and Medicare cause your taxes to go up 25% while they reside in their billion dollar houses.<BR/><BR/>Nobody gives a $sh** that you can't afford to live anywhere.<BR/><BR/>Everybody cares if you default on your mortgage, because that will kill their property value.<BR/><BR/>Younger folks, you are getting shafted royally!... Too bad you are too busy listening to your ipods and drinking Starbucks to do anything about it!<BR/><BR/>BTW, did you notice what happened to prices of everything that can't be imported since 2000? Housing, Education, Healthcare?<BR/><BR/>Instead of having broad inflation, it's been super-concentrated in energy and non-importable goods and services thanks to the global economy.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-78711983465088800672007-04-23T21:48:00.000+01:002007-04-23T21:48:00.000+01:00SF bay area prices went up $25K and you idiots thi...SF bay area prices went up $25K and you idiots think that equates to a loss. No wonder you think renting is better than owning.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-20408268654888008942007-04-23T21:35:00.000+01:002007-04-23T21:35:00.000+01:00man, look at that big pile of potassium...man, look at that big pile of potassium...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-87164349264092610262007-04-23T21:28:00.000+01:002007-04-23T21:28:00.000+01:00Because everyone knows it's good when housing pric...Because everyone knows it's good when housing prices go up but bad when gas and bananas prices go up.<BR/><BR/>How do they know it, programming.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-13222030147369615012007-04-23T21:16:00.000+01:002007-04-23T21:16:00.000+01:00Damn that's a great picture of the PresidentDamn that's a great picture of the PresidentAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-75215230961074987002007-04-23T21:15:00.000+01:002007-04-23T21:15:00.000+01:00Bananas have NEVER fallen in price. It's always a...Bananas have NEVER fallen in price. It's always a great time to buy bananas. Are you missing the banana boom?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-60831764685720415712007-04-23T21:14:00.000+01:002007-04-23T21:14:00.000+01:00I forgot to add that bananas would be different if...I forgot to add that bananas would be different if they weren't making any more bananas!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-85270082222811595492007-04-23T21:13:00.000+01:002007-04-23T21:13:00.000+01:00you are trying to be funny, right?It would be terr...you are trying to be funny, right?<BR/><BR/>It would be terrible news if you ate your house every month so were forced to buy a new one.<BR/><BR/>Or, banana price increases would be different if you lived in a banana that lasted for decades (ignoring maintenance and taxes) and you could then re-sell the banana.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-88292978314892212462007-04-23T20:56:00.000+01:002007-04-23T20:56:00.000+01:00To Anonymous 5:47Wait, I'm not finished yet,I gues...To Anonymous 5:47<BR/><BR/>Wait, I'm not finished yet,<BR/>I guess -12% is IF you paid 100% cash for the debt box. Let's take a more realistic scenario:<BR/>How about 50% down (I know, still not very realistic but since you're so smart and educated and rich I'll assume so) That's $370k @ 6%, (Oh BTW that's NEGATIVE 6%) I'll give you the write-off, so we'll be generous and say net loss =4%. (But again, you're so rich you will pay AMT so fuggetaboutit)<BR/>OK so net loss is 12% on 370k and 12+4%=16% on the borrowed (margin for you) remainder.<BR/>Average loss =14%<BR/>DUDE you rock!<BR/>OK, OK, if we eliminate the S&P benchmark, (Sorry pipsqueek, but that is the definitive benchmark) you only LOSE 2%.<BR/>Well good for you, net LOSS of 2%, that's great. Tell me where to sign up for Anonymous 5:47 HEDGE FUND.<BR/>HAHAHAHAHAAnonymousnoreply@blogger.com