U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-11-2018, 07:29 PM
 
2,621 posts, read 2,026,313 times
Reputation: 4761

Advertisements

Quote:
Originally Posted by kmarc View Post
To your first point, google up "the derivatives bubble". I've heard different valuations for this, one of them being that the value of the over the counter derivatives market is $693 trillion.

To your second point, people buy stuff they can't afford all the time. And you can get a visual on this by looking up pre-foreclosure maps for various neighborhoods on Zillow. It's most enlightening. Bear in mind that I've found the hairier maps to be concentrated in newer, trendier neighborhoods. There are solid, more established neighborhoods were there's hardly any pre-foreclosures as well.

But, lose a job, get a divorce, make a bad investment, have a health problem and IT"S GONE!


https://www.youtube.com/watch?v=TGwZVGKG30s
People losing a job, losing money in investments, businesses going broke, health issues, divorces etc..... are all normal and happen everyday. It isn't a problem until it happens at levels way, way above the norm and the market can no longer absorb it. Even then, it isn't a crash unless something happens at huge levels, and rapidly, all at the same time.
Reply With Quote Quick reply to this message

 
Old 08-11-2018, 08:14 PM
 
4,507 posts, read 4,362,049 times
Reputation: 3245
Quote:
Originally Posted by trusso11783 View Post
Here on Long Island, there is a major housing shortage. Seller are getting offers above their asking price which is crazy because you can barely find anything under $400K in decent shape. I donít care either way because I am selling. When houses go up for sale, they are gone so fast that the new family are moved in within two months.
When we sold at the top of the last bubble, it seemed to me that the buyers were so anxious to take possession that if we didn't get out ASAP, they'd consider having us physically removed and throw our belongings after us. Never saw anything like it.
Reply With Quote Quick reply to this message
 
Old 08-11-2018, 08:16 PM
 
4,507 posts, read 4,362,049 times
Reputation: 3245
Quote:
Originally Posted by High Altitude View Post
People losing a job, losing money in investments, businesses going broke, health issues, divorces etc..... are all normal and happen everyday. It isn't a problem until it happens at levels way, way above the norm and the market can no longer absorb it. Even then, it isn't a crash unless something happens at huge levels, and rapidly, all at the same time.
If you're looking at huge levels, that's the derivatives bubble. Which could take down housing in a heartbeat.
Reply With Quote Quick reply to this message
 
Old 08-11-2018, 08:18 PM
 
4,507 posts, read 4,362,049 times
Reputation: 3245
Quote:
Originally Posted by mlulu23 View Post
^^^^^ Thank you for this. Soberingly funny, and so true.
You're welcome. It's one of my favorite clips. Even to this day, every once in a while I think of "AAAND, IT'S GONE!"
Reply With Quote Quick reply to this message
 
Old 08-11-2018, 08:28 PM
 
Location: Phoenix, AZ
2,048 posts, read 1,456,654 times
Reputation: 2075
When people mention RE trends in CA, you need to remember that CA is a completely different animal from the rest of the nation. Wealthy buyers from all over the world buy there.
Reply With Quote Quick reply to this message
 
Old 08-11-2018, 11:54 PM
 
2,215 posts, read 754,367 times
Reputation: 3734
Quote:
Originally Posted by kmarc View Post
You're welcome. It's one of my favorite clips. Even to this day, every once in a while I think of "AAAND, IT'S GONE!"
And they are all looking at him like Whaaat? This line is only for people who have money in our bank, lol.
Reply With Quote Quick reply to this message
 
Old 08-12-2018, 12:02 AM
 
Location: Bothell, Washington
2,680 posts, read 4,457,986 times
Reputation: 3622
Quote:
Originally Posted by High Altitude View Post
Plenty of people knew we were in a bubble. I use to sit around with my investment group and we all talked about it. It is MUCH different this time. Unless there is some kind of catastrophic event that causes mass layoffs that lead to foreclosures/bankruptcies etc... there is no housing crash.

I also find it funny when people say housing is just not affordable so housing is going to crash, when all these houses are selling. If they are selling, someone can afford them. And they aren't getting liar loans to pay for them.
EXACTLY! It drives me nuts when people use the term "bubble", not knowing what that term really means! It is not a "bubble" just because a lot of people cannot afford homes at the current market price. A bubble only means that prices are high for some reason that is manufactured- that something "funny" is going on to push them up so high as we saw in 2008. This time it's different- every economic expert will tell you the same thing. This time it's based on demand an inventory. Here where I live, there are hoards of people moving in to the area, many with high paying jobs due to a red hot job market. There is limited land remaining to be able to build homes, so people are snatching homes up as fast as they can be built, and there is limited inventory of existing homes being sold- this causes prices to be high but people can afford them because they have high paying jobs OR are coming in with large amounts of cash on hand for down payments.
Reply With Quote Quick reply to this message
 
Old 08-12-2018, 12:21 AM
 
728 posts, read 399,195 times
Reputation: 1081
Quote:
Originally Posted by jm31828 View Post
EXACTLY! It drives me nuts when people use the term "bubble", not knowing what that term really means! It is not a "bubble" just because a lot of people cannot afford homes at the current market price. A bubble only means that prices are high for some reason that is manufactured- that something "funny" is going on to push them up so high as we saw in 2008. This time it's different- every economic expert will tell you the same thing. This time it's based on demand an inventory. Here where I live, there are hoards of people moving in to the area, many with high paying jobs due to a red hot job market. There is limited land remaining to be able to build homes, so people are snatching homes up as fast as they can be built, and there is limited inventory of existing homes being sold- this causes prices to be high but people can afford them because they have high paying jobs OR are coming in with large amounts of cash on hand for down payments.
I would like to know what kind of kool aid have you been drinking? It's different this time.....lol? Yes, this time our Fed criminals together with NAR shysters have created the mother of all real estate bubbles. Housing prices are merely pulling back from over extended positions mainly caused by speculative investing by foreign money. China's drop in real estate is already noticeable in California and is a welcome sight even though housing still remains absurdly priced thanks to the tech sector.

You people have to wake up. Our economy has been dead for 17 years. What do you get when one artificially lowers and suppresses interest rates after organic economic growth ends? ASSET BUBBLES, not growth. The FED's trick since 2001 was to encourage MORE debt and punish savers. Inflation for certain number of years followed by deflation for certain number of years. That is the law. The FEDs maneuvering is "unnatural" and will lead us into an even Greater Depression this time, since we still have a MOUNTAIN OF DEBT to destroy. The End.
Reply With Quote Quick reply to this message
 
Old 08-12-2018, 03:32 AM
 
64,577 posts, read 66,129,695 times
Reputation: 43003
For a dead economy many of us have been doing very well . Those who make things happen for themselves have likely done nicely .

Those who drift to wherever they end up likely got no where and always would have .dont you ever get tired of fed bashing ?

Last edited by mathjak107; 08-12-2018 at 03:46 AM..
Reply With Quote Quick reply to this message
 
Old 08-12-2018, 09:17 AM
 
1,301 posts, read 290,880 times
Reputation: 1127
Quote:
Originally Posted by wheelsup View Post
Where are you seeing price declines?
Suburbs of Chicago. But most of these were way overpriced to begin with. People are having a really hard time selling in Deerfield, Highland Park that I have heard.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top