back to the 80's (foreclosure, houses, buying)

[Weis02]

I was reading the local paper and AGAIN more articles about those with ARM's having problems paying mortages and that the worst is to come with foreclosure etc and my husband said this is very simialr to the 80's, where the housing market boomed, people were buying houses, selling a yr later with huge profits due to the increase of value and after a few years, people started to foreclose and slowly the market corrected itself and went back to what is considered normal...the same with our stock market - and it is still correcting itself... it appears history always repeats itself and the exact timing for a level off is not known, one can look historically for some speculative answer....what goes up must come down and vice versa.

[TornadoAlley]

I don't think it is so much the people selling and buying with big downs. Its more the person trying to buy when they can't afford it and instead of doing a fixed 30yr or taking even a 40yr they go with a 2% for 3yrs and hope they can either sell then or get that raise they probably will not end up getting...