Real Estate Market / Inflation / Recession / Depression (foreclosure, debt, vacation)

[jazzlover]

Originally Posted by formercalifornian

What happened to the great mortgage clean up? Several houses in my neighborhood have sold recently. Hooray! Except that all of the buyers put less than 5% down. Gotta love those public records.

Sort of akin to the saying that went around in early 1980's, "A rolling loan gathers no loss." By making another 5% down loan, the banks have not lowered their risk much at all, but maybe they have a borrower than can make the payment--at least for now. That takes the loan off of the non-performing list at the bank.

By the way, LBear makes a point about the dangers of negative thinking and stress. However, I think there is a difference between going around fretting about everything (which, believe it or not, I don't) and recognizing clear and present dangers to one's financial and personal safety--and being proactive in doing something about it. It is seldom true that "ignorance (root of "ignorance"--ignore) is bliss." In fact, all of the people who ignored the plentiful warning signs that predicted what we are seeing now are probably the ones REALLY stressed out. That "walking disaster" kind of guy would probably be somebody living 40 miles from his job out on a 10 acre tract in a 5,000 sq. ft. McMansion financed with a 5% down ARM first mortgage and a second on top of that; a financed brand new 2008 1-ton diesel pickup for his daily commute vehicle, and 3 SUV's (all financed) for his wife and kids; a boat (financed); a new RV (financed); a couple of kids nearing college age; 3 or 4 maxed out credit cards; enough savings and retirement accounts to last for about 2 months of living expenses; and a job in construction or real estate. And, believe me, there are plenty of people out there just like that. I've actually had a couple of them pretty similar to that for neighbors over the years. Man, it sucks to be them about now, I'd say.

[sterlinggirl]

Originally Posted by LBear

What can we do anyway? We can't change anything.

Watching the markets lately is kind of like watching a race at Daytona. You just know there's gonna be a wreck that takes out half the field.....

[jazzlover]

Some people who like to pretend that this is not happening would be the same ones that see they are going to be in car accident and close their eyes so they won't be a witness . . .

[LBear]

Originally Posted by jazzlover

Some people who like to pretend that this is not happening would be the same ones that see they are going to be in car accident and close their eyes so they won't be a witness . . .

Being prepared and living in a mental state of doom, gloom, pessimism, are quite different. Being aware and repeating bad & negative news over and over and over, are quite different.

Each and every post made carries the same mentality and same message. The point has been made, more than once. Repeating it over and over, being pessimistic and repeating doom and gloom, over and over gets old and begins to imprint on people. It is a psychological issue. The constant emphasis on this does nothing but breed negativity & unhealthy results.

[sterlinggirl]

Speaking of doom and gloom.....did anybody else notice how nice the weather has been lately?

[formercalifornian]

Originally Posted by LBear

Being happy and optimistic is best both PHYSICALLY and MENTALLY. Being worried and pessimistic is bad for your health and bad mentally.

But being too happy-go-lucky can be bad news for your wallet. I'm aiming for the middle ground: cautiously optimistic.

Being aware of market difficulties has stimulated my family to commit to lifestyle changes that we've been kicking around for a couple of years. They include moving closer to work and down-sizing our living quarters, dramatically increasing our savings rate, and modifying our investment strategy. These changes are creating more contentment and less worry in our lives, which are leading to better physical and mental health. I doubt I ever would have made these changes if not for those who sounded the alarm, and I'm now better prepared to meet future challenges because of them.

[brightdoglover]

I'm just hunkering down. Maybe I read too much news (or threads like this) but I absolutely do not feel adventurous in my financial or work life. I have baby boom friends who don't get it- still whining about having to work full-time, or about gas and health insurance being so hard to pay for, and why don't I quit that job that's so bad for my health (full-time nights, good benefits and PENSION) and move out West where of course life would be cheaper and I'd be in a place I seem to love?
It's hard to explain to those who don't want to see the rampant problems everywhere, and the rare security of my current situation.
Today's economic stats are grim. I think hunkering down with eyes wide open is a start.

[brightdoglover]

Regarding pessimism or optimism, there's an old Sufi saying, "Trust in god, but tie up your camel first."
Would someone act differently if they felt pessimistic versus optimistic? Quit a steady job? Buy too much house? Buy a bunker and stock it with weapons and canned goods?
Seems to me one cannot act or plan without some kind of informed outlook. I guess mine is to be prudent and watch and try to take in all info. I guess that's pessimistic, in that I wouldn't make any moves now that involve taking a chance on the changing environment. I consider that realistic, but maybe that makes me a pessimist.

[jazzlover]

Originally Posted by formercalifornian

But being too happy-go-lucky can be bad news for your wallet. I'm aiming for the middle ground: cautiously optimistic.

Being aware of market difficulties has stimulated my family to commit to lifestyle changes that we've been kicking around for a couple of years. They include moving closer to work and down-sizing our living quarters, dramatically increasing our savings rate, and modifying our investment strategy. These changes are creating more contentment and less worry in our lives, which are leading to better physical and mental health. I doubt I ever would have made these changes if not for those who sounded the alarm, and I'm now better prepared to meet future challenges because of them.

Exactly. I've done a lot of the same things and plan to do more. If some of us (and I am not alone) sound like a broken record when it comes to pointing out some of the problems we face, it is because there is still a huge segment of the population that still is living in massive denial about it. Truthfully, I doubt what is said here will influence those so deep in denial by very much, but if even a few decide to be more prudent in their financial and living arrangements, it would be worth it.

[LBear]

Some want to attribute a "Paul Revere" status to themselves.

Psychologists say that a mind steeped in negativity will only worsen one's survival chances in the world today. Being aware & prepared are quite different than being in a negative mindset.

During WWII, people knew things were bad. Imaging living in America and having a neighbor next door to you who constantly repeats himself about the war and its pain, suffering, causalities, death, each and every day you see him. The only "news" he reports is bad news and you can't get a positive comment out of him. One would avoid such a neighbor. As in society today, those type of people attract other doomers and gloomers, but they are avoided by others who get tired of their negativity.

Things are bad, after 860 posts, we get the point.