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Old 09-02-2010, 04:21 PM
 
3,853 posts, read 12,069,505 times
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hopefully housing prices drop further, I'll be in the market to buy in a couple years and I want to make sure I get the best value for my money.

See, there is always a good side to every crisis!
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Old 09-02-2010, 04:51 PM
 
9,840 posts, read 20,578,736 times
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Quote:
Originally Posted by SoCalCroozer View Post
So what? Americans have been living high on the hog for decades. It's about time they get a slice of economic humble pie. Especially the rich. Hopefully they will be running into their safe rooms when the pauper class riots and threatens to guillotine them ala the French Revolution.
Yes let's carve up all the productive and hard working Americans who took some risks and built a nice business for themselves. How dare people build a business up that employs people.

The "pauper" class as you call it here in the USA is already living high off the hog from productive, working people. In the town I live in PA, we've got plenty of people on welfare collecting a check, getting free or subsidized housing, food stamps to eat all they want, free cell phones and free transportation all over town.

I wouldn't call myself rich but I can say for one I can't see the "pauper" class getting off their lazy asses from the couch and revolting but if they do, there will be plenty of 7.62 MM going their way from the end of my FAL rifle.
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Old 09-03-2010, 04:39 AM
 
86,641 posts, read 84,083,397 times
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Quote:
Originally Posted by killer2021 View Post
hopefully housing prices drop further, I'll be in the market to buy in a couple years and I want to make sure I get the best value for my money.

See, there is always a good side to every crisis!
if homes dont pick up and consumer spending dont pick up you may not have a business or a job to buy that house with.... as long as home prices keep falling it means that folks that want to take advantage of these nice low mortgage rates and refinance cutting their payments so they have more to spend they cant as the loan values they need exceed the home prices.

the feds buying of all there trillions in mortgage back securities was supposed to drop rates so the good payors could refinance and have money left over each month to spurr things on.

well very few homes qualify for re-financing hense little extra spending is happening from all this.
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Old 09-03-2010, 11:44 AM
 
2,592 posts, read 4,883,725 times
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Quote:
Originally Posted by mathjak107 View Post
if homes dont pick up and consumer spending dont pick up you may not have a business or a job to buy that house with.... as long as home prices keep falling it means that folks that want to take advantage of these nice low mortgage rates and refinance cutting their payments so they have more to spend they cant as the loan values they need exceed the home prices.

the feds buying of all there trillions in mortgage back securities was supposed to drop rates so the good payors could refinance and have money left over each month to spurr things on.

well very few homes qualify for re-financing hense little extra spending is happening from all this.
Most people that have been able to refinance are already fairly smart with their money and don't owe much on their homes. They are usually savers. The buyers who are trying to take advantage of the low rates usually just buy more of a house if they can. So if they are looking around $1,500 a month, they will buy whatever house they can get at that cost. If it a bigger house, well even better for them.

The problem with really low interest rates is it can still keep home prices high when home prices should come down. We would be better off with lower home prices so people can more easily make a down payment. Also, with lower home prices people should have more disposable income. Borrowing money off your house isn't real wealth and will just cause more debt. We have done that for the last 5-8 years and it helped cause the problem.
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Old 09-03-2010, 11:52 AM
 
86,641 posts, read 84,083,397 times
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the real problem is these low rates arent helping anyone they are supposed to.... if your behind on your payments you get a loan modification. no other costs, they just drop your rate ...if you do the right thing and pay your mortgage, you get whacked with closing costs on a refi that make it not worth it for a good payor with a 150k mortgage to even refinance......

there are millions of these good payors out there and none of them can take advantage of lower rates because either they dont have enough equity or its just not worth it after closing costs......


if you were not a responsible person you got rewarded, all the other folks got nothing for the most part.
like i said all this extra spendable cash that was supposed to be generated by these lower rates never even got to first base.
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Old 09-09-2010, 08:53 AM
 
2,409 posts, read 2,799,943 times
Reputation: 2031
Quote:
Originally Posted by wanneroo View Post
Yes let's carve up all the productive and hard working Americans who took some risks and built a nice business for themselves. How dare people build a business up that employs people.

The "pauper" class as you call it here in the USA is already living high off the hog from productive, working people. In the town I live in PA, we've got plenty of people on welfare collecting a check, getting free or subsidized housing, food stamps to eat all they want, free cell phones and free transportation all over town.

I wouldn't call myself rich but I can say for one I can't see the "pauper" class getting off their lazy asses from the couch and revolting but if they do, there will be plenty of 7.62 MM going their way from the end of my FAL rifle.
Where did I mention the "pauper" class genius? I'm talking middle class. And since when did small business owners equate to the "rich". Small business owners span a very broad spectrum of wealth.
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Old 09-10-2010, 08:31 AM
 
Location: San Diego California
6,797 posts, read 6,654,496 times
Reputation: 5180
Quote:
Originally Posted by mathjak107 View Post
if homes dont pick up and consumer spending dont pick up you may not have a business or a job to buy that house with.... as long as home prices keep falling it means that folks that want to take advantage of these nice low mortgage rates and refinance cutting their payments so they have more to spend they cant as the loan values they need exceed the home prices.

the feds buying of all there trillions in mortgage back securities was supposed to drop rates so the good payors could refinance and have money left over each month to spurr things on.

well very few homes qualify for re-financing hense little extra spending is happening from all this.
Keeping housing at unaffordable levels is what is killing the economy. Recovery cannot begin until debt is wiped out, and money begins to be spent on productive profitable things. Investors will not return to the housing market until prices allow them to make a reasonable return.
The market must be allowed to set prices, and the interference from government in that process is only making the situation worse. The debt the government is running up must be serviced; meaning more of people’s future pay will go to paying interest on debt instead of purchasing goods and services to benefit the economy. Slowly people are beginning to realize that, and the policies of reckless deficit spending are becoming more and more unpopular. No market recovers until capitulation occurs. Postponing capitulation, postpones recovery.
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Old 09-11-2010, 11:57 PM
 
48,508 posts, read 88,862,258 times
Reputation: 18195
Well since geithners housing plan which was a private investoir;governamnt plan did not come true after investor groupos decided they wanted nothing to do with such a partnership after the chrysler and Gm bankrupies. But no one including the government is in any hurry for them to actually unbundle the bundles of loans. That means the bnaks will not change anyhtig on thier books to actually reflect loss. Its said by many that it will slowly be worked out over like a 15 years time period. That basically means that the supply of homes will be slower in coming on the market. Banks do not want to push too many out on foreclosures and takeover upkeep on that number of homes.To unbudle is a masive and cost jobs thatwilltake alog time. They figure why hurry ;writedown the loses plus cost and endup with homes of lessor value. The government sure as no motive to push them either.
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Old 09-12-2010, 09:50 AM
 
Location: Fairfield, CT
6,362 posts, read 9,348,229 times
Reputation: 7338
Quote:
Originally Posted by wanneroo View Post
Yes let's carve up all the productive and hard working Americans who took some risks and built a nice business for themselves. How dare people build a business up that employs people.

The "pauper" class as you call it here in the USA is already living high off the hog from productive, working people. In the town I live in PA, we've got plenty of people on welfare collecting a check, getting free or subsidized housing, food stamps to eat all they want, free cell phones and free transportation all over town.

I wouldn't call myself rich but I can say for one I can't see the "pauper" class getting off their lazy asses from the couch and revolting but if they do, there will be plenty of 7.62 MM going their way from the end of my FAL rifle.
I have no sympathy for the pauper classes.
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Old 09-12-2010, 09:51 AM
 
Location: Fairfield, CT
6,362 posts, read 9,348,229 times
Reputation: 7338
Quote:
Originally Posted by jimhcom View Post
keeping housing at unaffordable levels is what is killing the economy. Recovery cannot begin until debt is wiped out, and money begins to be spent on productive profitable things. Investors will not return to the housing market until prices allow them to make a reasonable return.
The market must be allowed to set prices, and the interference from government in that process is only making the situation worse. The debt the government is running up must be serviced; meaning more of people’s future pay will go to paying interest on debt instead of purchasing goods and services to benefit the economy. Slowly people are beginning to realize that, and the policies of reckless deficit spending are becoming more and more unpopular. No market recovers until capitulation occurs. Postponing capitulation, postpones recovery.
amen
amen
amen
amen
+10000000000

You could not be more right. Housing is NOT an investment; it is an expense. A wealthy society can spend more for housing that is more luxurious than necessary, provided it is affordable. But to tell ourselves that it is an investment is a delusion. We have been committing way too much capital to this unproductive use, and the artificial maintenance of high prices is unfair to those who wish to buy houses plus it also drains money from the economy into an unproductive use. Too many people made too many stupid decisions to avoid major losses. We need to take the losses and move on. That's the only way we can recover.
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