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Your previous posting states otherwise.
Housing prices going up 50%, in 6 years is a pretty big "jump"
Your point didn't have to do with 2000-2006. Your statement related to what happened in 1997, implying that prices jumped overnight. As the numbers have shown, prices were rising before during and after 1997, as they would be expected to do when interest rates are falling.
Keep in mind also, real estate (residential) is not truly national - it is local. For instance, we can find areas where property values are going UP - not down, right now
That's certainly the case, as it is with employment, weather, and many other variables. But unless for some reason you're focused on one block, one neigborhood, one town, or one state, the national numbers are the primary indicator of what's going on overall and everywhere.
That's certainly the case, as it is with employment, weather, and many other variables. But unless for some reason you're focused on one block, one neigborhood, one town, or one state, the national numbers are the primary indicator of what's going on overall and everywhere.
As a business owner / broker, my concern is primarily with my market territory - and I can tell you, with absolute confidence, that there have been many times when the "national numbers" have said things are in the toilet and our market keeps on going "it is"? Could have fooled us
Alone? No. A signifcant source of problems - particularily in the Southwest? Yes.
Somewhere has to be the place with the most criminal and predatory lending practices going on. Maybe it's just your turn?
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Originally Posted by Greatday
And, to date, I am unaware of any criminal convictions handed down for such behaviors. Maybe in the future.
These things take time. Look how long it took to get Scooter Libby. :-) But if there had been effective state and federal oversight and regulation, these problems would have had a much tougher time in coming to gum up the local works.
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Originally Posted by Greatday
Perhaps you can join us, next year, the 100th birthday of NAR, in Orlando. Might be a good source of valid information for you.
Orlando? Yuck! But I'll be there in March in spite of myself.
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Originally Posted by Greatday
Of course, you can always come to the Mid-Year meetings, in May 2008, in Washington - the hearings in Congress, Legislation - proposed and passed, other legal issues on these very issues will be discussed.
Hmmm. May, May, May...let me see. Nope, should be around for a good part of May. Washington Marriott, eh...Dupont Circle...should be a good time. Do I get free food? Maybe I could run a workshop or get myself on the speakers list or something. Surely everyone would look forward to hearing the insights of <saganista>...
should be around for a good part of May. Washington Marriott, eh...Dupont Circle...should be a good time. Do I get free food? Maybe I could run a workshop or get myself on the speakers list or something. Surely everyone would look forward to hearing the insights of <saganista>...
Hmmm. May, May, May...let me see. Nope, should be around for a good part of May. Washington Marriott, eh...Dupont Circle...should be a good time. Do I get free food? Maybe I could run a workshop or get myself on the speakers list or something. Surely everyone would look forward to hearing the insights of <saganista>...
I would LOVE to sign up to watch you speak, just to see how many giggles you get in the background as you spout off your
"Somewhere has to be the place with the most criminal and predatory lending practices going on." comments
SURELY THERE JUST HAS TO BE CRIME going on somewhere causing all of this..
Excuse me while I bang my head against the wall! The write down was on YOUR balance sheet, not the person you bought the house from, which is where the money went.
The person you bought the house from doesn't enter into it. He's the person where the money went, you're the person where the house went. You merely traded assets of a different nature but equal value. Now the value of your asset goes down. That's just tough luck for you. Your balance sheet takes a hit. There is no effect at all on the original seller, except perhaps for how happy he is to have dumped this house off onto you in the nick of time.
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Originally Posted by pghquest
IT DID NOT DISAPPEAR. This also means that the banks move cash from their "asset" lines, and then "write off" the balance as a loss. This does not mean that the money has disapeared, its still sitting in our pocket in Argentina.
No, it isn't. You don't have any money. This is why you defaulted. You have a house. Which you presumably were not able to sneak past sharp-eyed TSA agents as carry-on luggage on the way to Argentina. The bank does indeed take your house and sell it at a loss, and that loss is value that disappeared. You wouldn't be any richer if the bank could only get $40K for the place instead of $60K. All that would happen in that case is that the bank would be poorer.
Quote:
Originally Posted by pghquest
It disappeared from YOUR balance sheet, the money did not disappear from society. That $100K asset that turns into an $80K asset, still involved paying the $100K to the seller. The fact that the NEW value is now $80K does not mean you go back to the seller asking for your $20K back. While YOUR balance sheet shows a $20K loss, the seller of the property has already received the $20K profit.
We don't know how much profit the seller made. Depends what he bought the house for and how much he invested in it after he acquired it. None of that has anything to do with you. If he made a profit, it was in the form of a realized capital gain. A write-down is just a form of realized capital loss. This asset (whatever it is) was formerly worth something, and now it is not. Because it is not and there is no prospect that it ever will be again, no one will buy it from us. Hence, it is worthless, and we are taking a write-down to reflect that fact.
Quote:
Originally Posted by pghquest
In accounting, all profits and losses, debits and credits, need to be offset somewhere else. This holds no difference when your speaking on a national level because while you still add in inflation, inflation rates get their own line items on a national accounting basis.
I've been trying to explain this in simple double-entry terms, but the point isn't getting across. Only one actor is involved in a write-down. Inflation would meanwhile be accounted for by preparing a balance sheet expressed throughout in either nominal or constant dollars.
The person you bought the house from doesn't enter into it. He's the person where the money went, you're the person where the house went. You merely traded assets of a different nature but equal value. Now the value of your asset goes down. That's just tough luck for you. Your balance sheet takes a hit. There is no effect at all on the original seller, except perhaps for how happy he is to have dumped this house off onto you in the nick of time.
No, it isn't. You don't have any money. This is why you defaulted. You have a house. Which you presumably were not able to sneak past sharp-eyed TSA agents as carry-on luggage on the way to Argentina. The bank does indeed take your house and sell it at a loss, and that loss is value that disappeared. You wouldn't be any richer if the bank could only get $40K for the place instead of $60K. All that would happen in that case is that the bank would be poorer.
We don't know how much profit the seller made. Depends what he bought the house for and how much he invested in it after he acquired it. None of that has anything to do with you. If he made a profit, it was in the form of a realized capital gain. A write-down is just a form of realized capital loss. This asset (whatever it is) was formerly worth something, and now it is not. Because it is not and there is no prospect that it ever will be again, no one will buy it from us. Hence, it is worthless, and we are taking a write-down to reflect that fact.
I've been trying to explain this in simple double-entry terms, but the point isn't getting across. Only one actor is involved in a write-down. Inflation would meanwhile be accounted for by preparing a balance sheet expressed throughout in either nominal or constant dollars.
I'm done.. I my headache is starting to hurt because all of this simply started with
THE MONEY DID NOT DISAPPEAR.
I'll try to tell the IRS when they want to know where my money went that it Disappeared and then give them your name, I'm sure they will LOVE to hear you tell them how money disappears.
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