Although in Phoenix, desperation (I'll take any price! Look at all these damn For Sale signs!) has to be just around the corner... Just think about that Tucson flipper who's desperate to get out from the other day...
July 03, 2006
Moving past denial and sailing into Fear Harbor
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I can't wait for capitulation, even though things will be quite a mess by then
AAAAaaaaaaaaaaaaagggghghhhhhhhhhhh!!!!
We're not scared in Vancouver:
http://vancouvercondo.info
We're feeling rather brave.
The MSM is talking about the bubble and some of the pundits are still in denial. I have not yet heard any of them talking about the impact on the economy RE has had and what will be the result of RE going flat. They are just talking about the individual's pain from a increasing mtg payment, not so much about the possibility of a recession.
Just back from Vegas. Started talking about the Vegas RE bubble at a pai gow table with the dealer who announced himself to be "in the lending business". The only other player turned out to be a RE agent. The dealer/lender was a hispanic/goldchain/fasttalking/ladies man kind of guy who at first was rah rah RE until i told him any deals he had other than Refi's was some poor sucker. He looked shocked at that but I was a bit drunk by then.
They loosened up quickly and the RE agent was a 25 year vet in the business said the inventory in vegas was insane, that lenders and agents were moving out of the business in droves, AND that they were still lending to anyone they could. I mentioned the 2 tril in adjustable debt hitting in the next couple years and he said something like "you have no idea".
He told me just the day before they got 100% financing for a guy on a 400k home and the guy has 138k credit card debt!
Duck and cover because people are going off this cliff with the foot on the gas peddle...
He told me just the day before they got 100% financing for a guy on a 400k home and the guy has 138k credit card debt!
Duck and cover because people are going off this cliff with the foot on the gas peddle...
That's good stuff right there. Doesn't our new banktruptcy law encourage this behavior?? Going out in a blaze of glory???
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