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Old 08-20-2012, 05:15 PM
 
Location: None of your business
5,467 posts, read 3,639,855 times
Reputation: 1170

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Quote:
Originally Posted by Rolling_Rock View Post
Its 2012 and A LOT OF PEOPLE are underwater -- looks like the housing bubble worked out for them - I remember being laughed at in 2005 for renting and NOT 'buying' (getting into absurd debt) for a 'home'. Today I own a house bought with CASH (no loans) while those who laughed at me are sitting in $500K rot boxes that will only sell for $150k.

OH THE IRONY OF THE MASSES GREED.
The same thing happened to me. Friends kept asking why we did not buy. I could not figure out how people were doing it. When I finally did consider buying a house, the banker told me that I could borrow more money and pay interest only for the first 5 years. That banker has no clue they talked me OUT of buying a house. It told me that people that people were using fancy loans to buy more than they could afford and it would lead to people losing their homes. At the time I did not understand that the banks were encouraged to loan money.

People were also using their homes as a bank for renovations, vacations and to consolidate credit card debt. If consolidating, once they freed up credit cards availability people continued using credit card debt. Now they had to pay credit card debt and the consolidation loan.

Paying bubble prices, using a house as a bank, putting very little or nothing down and a crash lead to underwater homes. What goes up must come down.

Like you, I am happy now that I did not buy the white picket fence when it just didn't make sense.

Last edited by eRayP; 08-20-2012 at 05:23 PM..
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Old 08-20-2012, 05:19 PM
 
Location: None of your business
5,467 posts, read 3,639,855 times
Reputation: 1170
I hate to offend but it is ridiculous that people are blaming everyone else instead of taking responsibility for their own actions. Yes the banks dangled the carrot of easy money but if they understood basic finance they would not have taken the debt. Instead they would have used good old fashion fiscal understanding and responsibility.

Yes it would be nice that everyone is able to afford a home but if you want it, work for it, save for it. You can't keep subsidizing the poor and not expect economic backlash. So what you have just witnessed is

Subsidize and Easy Money = Bubble = Crash
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Old 08-20-2012, 06:55 PM
 
Location: State of Superior
8,578 posts, read 13,466,423 times
Reputation: 2708
Quote:
Originally Posted by Rolling_Rock View Post
The 'market' was just A HOUSING BUBBLE - easy credit. Banks lend, sheeple borrow, Banks stop lending, sheeple stop borrowing (and thus stop buying over priced CRAP) simple as that...

the thing to remember is thousing 'market' wont 'come back' as too many hopeful fools keep believing...
Its not quite that simple.There would never have been a " bubble" if the market was not overloaded with homes.Yes there was a lot of criminal dealings and outright fake statements on balance sheets. That part was nothing more than greed, still is.
The people are still there, even more as loans are very hard to get for the vast majorities . I never saw rents go down. Rental housing prices have gone up all through this mess.The exception was vacation properties both owned and rented.Many vacation places could not get the outrageous prices, so far that part still remains. Again, its like I said, supply and demand, which will only improve if loans become easier to get once again. In the meantime multi housing is booming, they can't build rentals fast enough, and the rents are high as ever, maybe more.People still need a place to live, that did not change.

Last edited by Debsi; 08-21-2012 at 07:40 AM..
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Old 08-21-2012, 08:28 AM
 
4,015 posts, read 4,858,350 times
Reputation: 3897
Quote:
Originally Posted by Rolling_Rock View Post
The 'market' was just A HOUSING BUBBLE - easy credit. Banks lend, sheeple borrow, Banks stop lending, sheeple stop borrowing (and thus stop buying over priced CRAP) simple as that...

the thing to remember is thousing 'market' wont 'come back' as too many hopeful fools keep believing...
Moderator cut: off topic

You seem to be pretty confident in all your future predictions. What are this weeks Powerball numbers?
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Old 08-21-2012, 10:42 PM
 
51 posts, read 110,327 times
Reputation: 20
Quote:
Originally Posted by eRayP View Post
The same thing happened to me. Friends kept asking why we did not buy. I could not figure out how people were doing it. When I finally did consider buying a house, the banker told me that I could borrow more money and pay interest only for the first 5 years. That banker has no clue they talked me OUT of buying a house. It told me that people that people were using fancy loans to buy more than they could afford and it would lead to people losing their homes. At the time I did not understand that the banks were encouraged to loan money.

People were also using their homes as a bank for renovations, vacations and to consolidate credit card debt. If consolidating, once they freed up credit cards availability people continued using credit card debt. Now they had to pay credit card debt and the consolidation loan.

Paying bubble prices, using a house as a bank, putting very little or nothing down and a crash lead to underwater homes. What goes up must come down.

Like you, I am happy now that I did not buy the white picket fence when it just didn't make sense.

The masses are imbeciles - the MOMENT the TV and BANKS say 'BUY NOW GET RICH!' the idiots go into a mass FRENZY -- aint no free lunch -- today in 2012 the 2005 era bubbletards are LICKING THEIR WOUNDS -- back in 2005 they were ARROGANT, now, quiet as a church mouse...

greedy fools --
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Old 08-21-2012, 10:45 PM
 
51 posts, read 110,327 times
Reputation: 20
Quote:
Originally Posted by darstar View Post
Its not quite that simple.There would never have been a " bubble" if the market was not overloaded with homes.Yes there was a lot of criminal dealings and outright fake statements on balance sheets. That part was nothing more than greed, still is.
The people are still there, even more as loans are very hard to get for the vast majorities . I never saw rents go down. Rental housing prices have gone up all through this mess.The exception was vacation properties both owned and rented.Many vacation places could not get the outrageous prices, so far that part still remains. Again, its like I said, supply and demand, which will only improve if loans become easier to get once again. In the meantime multi housing is booming, they can't build rentals fast enough, and the rents are high as ever, maybe more.People still need a place to live, that did not change.


1) Banks lending LOTS of money to MASSES = BUBBLE -

2) Masses then go into FRENZY thinking the 'profits' (flipping) will never end

3) IT ENDS (because banks stop lending)

4) Masses are defeated and thus CONTROLLED

5) Banks win, game over, INSERT COIN

6) The masses play the game again....
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Old 08-21-2012, 10:47 PM
 
51 posts, read 110,327 times
Reputation: 20
Quote:
Originally Posted by lenniel View Post
You seem to be pretty confident in all your future predictions. What are this weeks Powerball numbers?

They are not predictions, its called INTELLIGENCE


the 2005 housing bubble 'up and comers' LAUGHED AT ME for NOT 'buying' (getting mortages) for houses. Well LOOK AT THEM NOW -

Theres no such thing as free lunch - the masses borrow their lives away...

one day they are 67 and wonder why they never had one day of freedom [from debt] in their entire lives -- then they die...
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Old 08-22-2012, 07:27 AM
 
4,546 posts, read 11,555,227 times
Reputation: 3068
Quote:
Originally Posted by Rolling_Rock View Post
They are not predictions, its called INTELLIGENCE


the 2005 housing bubble 'up and comers' LAUGHED AT ME for NOT 'buying' (getting mortages) for houses. Well LOOK AT THEM NOW -

Theres no such thing as free lunch - the masses borrow their lives away...

one day they are 67 and wonder why they never had one day of freedom [from debt] in their entire lives -- then they die...
I am laughing at you now.
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Old 08-22-2012, 08:23 AM
 
Location: State of Superior
8,578 posts, read 13,466,423 times
Reputation: 2708
Quote:
Originally Posted by Rolling_Rock View Post
1) Banks lending LOTS of money to MASSES = BUBBLE -

2) Masses then go into FRENZY thinking the 'profits' (flipping) will never end

3) IT ENDS (because banks stop lending)

4) Masses are defeated and thus CONTROLLED

5) Banks win, game over, INSERT COIN

6) The masses play the game again....
Contrary to what you have said, most people were not into " flipping" houses. That market was and still is a specialized business . During the recession ( depression ) many were doing better than before the " bubble".
Sorry, but I do not think the Housing Market went south because of the " masses". The underlying problem was with the out of control Wall Street investment houses that acted like a bank when they were not really. The small town banker suffered along with many who lost their homes. The smart ones sold the paper before the ink was dry, and moved on. The process is called bundling , for the lack of a better word at this moment.
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Old 08-22-2012, 10:01 AM
 
3,576 posts, read 5,907,294 times
Reputation: 1431
Quote:
Originally Posted by Rolling_Rock View Post
Its 2012 and A LOT OF PEOPLE are underwater -- looks like the housing bubble worked out for them - I remember being laughed at in 2005 for renting and NOT 'buying' (getting into absurd debt) for a 'home'. Today I own a house bought with CASH (no loans) while those who laughed at me are sitting in $500K rot boxes that will only sell for $150k.

OH THE IRONY OF THE MASSES GREED.
Depends what part of the country you live in. In NE and out West (in prime areas) 150K barely buys you a studio apartment. Hard to put a family of 4 and a dog in a studio condo for 150K.

Or you can move 20-30 miles out and face 2 hour commute and gasoline money and most importantly (time).

Everything is about perspective. In many places, it's extremely hard to find quality single family rentals for less than $3000 a month that's in a good school district.

Also think about this.

Who's better off? Renting for $3000 a month x 10 years. Or owning a home that goes down 35% (that's the national average) for 10 years and paying say $3500 a month (principal/taxes/hoa/insurance etc)?

Who's better off?

Both end up in the same situation after 10 years.

If you are single or married with no school age kids, than of course you can rent something cheaper for a while. But a family with school age kids is a whole different ball game when it comes to finding a place to live.
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