The wealthy have never had it so good. (insurance, wealthiest, real estate)

[Stac2007]

Just like during the depression the wealthiest individuals are seeing this period as an opportunity to buy real-estate at very low prices. Thousands of homes are being auctioned off so low that many of them are being purchased at 40% to 50% of their original value. The middle class might be disappearing but the nation's wealthiest persons just made a killing.

[8 SNAKE]

I guess I don't see the point of this thread. You're making a blanket statement about different economic classes without pointing out any relevant or interesting information. Are you just complaining, or do you have a reason for this thread?

[pghquest]

Originally Posted by Stac2007

Just like during the depression the wealthiest individuals are seeing this period as an opportunity to buy real-estate at very low prices. Thousands of homes are being auctioned off so low that many of them are being purchased at 40% to 50% of their original value. The middle class might be disappearing but the nation's wealthiest persons just made a killing.

The wealthiest will make a killing because the wealthiest just got killed, its the way it is, those who are the richets get harmed the most, and they profit the most from a swing in the market.

[ExcellentFudge]

It is a matter of taking risk, too. Do you think we have finally bottomed out with real estate and stocks and unemployment extremes? It is not that simple. I think there are some more shoes to drop but getting that word out does not keep confidence up and pump sales. I think the consumer will vote with their wallet and job situation indubitably. Too much capacity and inventory to work out of the system. You will have more time to find assets at reduced prices later on still.

[Chango]

Originally Posted by ExcellentFudge

It is a matter of taking risk, too.

You can't take any risks if you have nothing to bet. The game is rigged to benefit only the few who can afford to play and opportunities are not equal.

[Omaha Rocks]

Originally Posted by Stac2007

Just like during the depression the wealthiest individuals are seeing this period as an opportunity to buy real-estate at very low prices. Thousands of homes are being auctioned off so low that many of them are being purchased at 40% to 50% of their original value. The middle class might be disappearing but the nation's wealthiest persons just made a killing.

And so what is your point?

It doesn't have to be "the wealthiest individuals" who buy low and sell high.

[sunsprit]

Outside of playing a "class envy" card here ...

The "wealthiest individuals" make no gain on these real estate purchases unless the market swings back up and gives them some appreciation on their investment.

In the meantime, the "wealthiest individuals" aren't taking the purchases home and eating them for lunch. They pay taxes on the property, employ various trades to repair and maintain them, pay real estate commissions on the purchases, and rent or lease the housing out to those who can't, won't, or don't need to buy a house with all of it's committment and investment.

Further, the "wealthiest individuals" don't know when the bottom of the market is here any more than you do ... and they may yet be buying houses which are still going to lose market value. There's no big return on investment when that happens, is there? Unless and until the house values go up and the "wealthiest individuals" can sell their properties at a profit ... they've taken all the risks and have received no profits. That means that the market must come back strongly enough that other folks can afford to buy and get financing of their house purchases.

Between rising mill levy's, cost of funds, operating and insurance costs, many "weathiest individuals" are into the housing market at a loss or very minimal positive cash flow, so it's not like they're "getting rich" right now on these investments nor are they very likely to see a big return and profit in the next few years.

I know folks who bought residential real estate properties years ago and with the downturn in the marketplace today, are far behind in the possible "profit" in their property. Their "nest egg" that they worked for to help fund their retirement in lower cost of living years (as empty nesters in a smaller place) is gone. Thanks to the county assessor's office valuation and local tax practices, they're still paying taxes on the places as if it they were a much more valuable property. In some cases, by the time they pay taxes, insurance, and maintenance costs ... they're just breaking even on the annual income from the places. On paper ... they're "wealthy" because they own $millions of real estate but on the real issue of cash flow and earnings, they're far worse off then if they'd invested their money in other places. Meanwhile, other folks are enjoying the use of the houses at fair market rental rates, which is far less than they could have bought the houses for.

Stac2007 ... if you think residential real estate is such a great way right now to make a financial killing, why don't you invest a few dollars of your own? There's lots of programs to assist folks of any income level to buy their own place with very low interest rates. In many markets, you can buy a place for what it would cost you to rent. You don't have to go looking at the top of the marketplace in the most expensive areas, you can do this in areas with housing targeted to your income level ... if you're working.

[Fat Freddy]

"Wall Street" is the tool box of the Super Rich.

They use these tools to control financial and economic systems and structures.

It is all manipulated and controlled.

But accidents do happen, manipulations can have unforeseen consequences, and there are always greedy loose cannons.

However, it always works out within the intended framework.

And the Rich get richer.

[gwynedd1]

Its too simplistic to describe the rich as making a killing. The issue is over credit. Those who have access to credit because they were conservative and frugal should potentially make a killing now which would route assets to good managers. That is really how it should work. So what is the problem? Access to credit is completely arbitrary having nothing to do with money management. That is what the bailouts are all about. Those who were the worst offenders are given even more credit. Thus credit is available by an arbitrary mechanism. That is a kleptocracy. The New York banking establishment has control of the Treasury and Federal Reserve. It should be as obvious as when Britain burned the white house. The Treasury is being looted, and the muddy foot steps and tread marks upon the sacred gardens are obvious.

[texdav]

Originally Posted by Chango

You can't take any risks if you have nothing to bet. The game is rigged to benefit only the few who can afford to play and opportunities are not equal.

Really in most cases its more that many rigged their failure themsleves not being able to benefit by decisions they made long ago so times. The that also applies to former wealthy people also.Accumulating and keeping wealth is a tricky business that requires alot of work most times.Some buy into what was thought was a safe route that doesn;t tunout that way and they have nothing to fall back on.That is the old eggs in one basket really.