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Odds are just by human nature being what is most frugal folks who managed to save large sums of money generally are not parting with it in some massive collapse to take the risk of buying anything.
It is one of those things that sounds plausable but will rarely actually happen much.
In my case I was unable to execute... it was not for lack of trying times... one was the backup offer for 59 days and my offer was cash as-is... it was a deal of a lifetime... for me anyway.
I tend to be contrarian... when people sell... I'm looking to buy... when people are buying like there is no tomorrow it's not me.
I have been wrong before. Right now I see a healthy amount of buyers and a healthy amount of sellers. I don't see the rush that we have had in other run ups in the market. Not to discount other actions that might disrupt the apple cart. A large move in the interest rate could slow things but realize we are still at historic lows. People were buying when rates were in the 6, 7, 8 and even higher ranges.
Yes we are at historic lows. And we are not seeing the feeding frenzy we had before the top of the market. But healthy? I can't agree with that one as healthy interest rates would collapse the economy and with that there wouldn't be any buyers for the houses.
Odds are just by human nature being what is most frugal folks who managed to save large sums of money generally are not parting with it in some massive collapse to take the risk of buying anything.
For the average person, it is a dumb idea to buy a house with the majority of their cash during a financial crisis. If they had the cash to buy a house back in 2008, they should still have more than enough to buy a house in today's real estate market (assuming they had invested in the stock market instead).
For the average person, it is a dumb idea to buy a house with the majority of their cash during a financial crisis. If they had the cash to buy a house back in 2008, they should still have more than enough to buy a house in today's real estate market (assuming they had invested in the stock market instead).
Depends on location. Houses got VERY cheap in some places, where it would've made sense to buy them. If you didn't buy, then you have to take money out of your stock portfolio every month to pay your rent. if the house was sufficiently cheap at the beginning of the time period under consideration, your stock portfolio would experience a significant drag as a result.
I'm just crossing my fingers that my brother, who thinks like Mathjak, is correct. I am trusting that the loss of my monies, will be made up & make more. I will not have to touch it for a long time, 5 years at the least, but I see no reason why I can't wait until 70, when I will have to take some out.
I just hope you guys are right & I wish they would quit sending a monthly statement, which shows my funds dwindling. I just have to close my eyes & trust. My brother is now a millionaire due to his wise investments.
If the homes drop values too fast and foreclosures pop up the banks will jump in and repossess them and take them off market this will prevent the home values to drop and then they will ask for a bailout. That is what happened in 08'
You are missing a key point........
The banks had Tarp/FED to back them up 08
The FED/ECB are out of options that's why they are going negative rates they are toast.
How is the bank going to sit on surplus inventory when none of the big ones can pass the stress test from the Fed
Even China has their own Plunge Protection Team they threw $50 mil at the other day
Paulson said we are not facing another financial crisis. He is the guy that made a lot of money in the last housing bubble.
The next one is just different enough that you don't see it coming.
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