60 minutes: Real estate bust #2 is on its way!

[austinite45]

Originally Posted by desertsun41

I been saying this for a year now and I am far from any financial genius. What we are about to experience is going to make the 1928 Great Depression look like just a blip on the map. We are in for a total and complete economic collapse. What is a total and complete economic collapse? No one knows, we never had one. But we will.

can you please hold it for a while so that I can prepare myself for shorting everything in sight?

I don't know exactly how bad or how fast it's going to be but I agree that the worse is still to come.

The difficult question is, how to make money out of it.

[Des-Lab]

Let's brush aside things like ethics, sustainability, creditworthiness, etc for a moment and just look at the big picture.

The housing/credit bubbles were one of, if not THE biggest financial parties in this nations history. A lot of people enjoyed some really good times during those few years. Bulls outnumber bears by something like 10 to 1 here. It will NOT be soon forgotten. To stand or sit there and think that hopes, demands, and attempts to reinflate those bubbles is going to abate anytime soon is someone who's living in an even bigger fantasy land than those who played "The Greater Fool". Forget it. It got quickly ingrained into our DNA and will not be forgotten anytime soon. And as long as we choose to take the paths of least cost/resistance (which is human nature), some or all of those attempts will likely succeed in varying degrees.

Until both banks *AND* irresponsible borrowers (emphasis on both to avoid giving one side over the other some appearance of favoritism) are FORCED to accept financial losses up to and including hundreds of thousands of dollars-quite literally at gunpoint and/or being dragged off to reinstated debtors prisons kicking and screaming if necessary, you guys are all wasting your time.

That's how deeply the housing bubble is ingrained into our collective pshyches. Not until real people like Mr and Mrs Jones are literally murdered over it or dragged to prison will we snap out of it.

Yes. That's what it's going to take to give us the cold çock across the face we so desperately need. EVERYONE needs to pony up to their obligations irrespective of what the present and future markets do. Pay with it either out of their wallet. Or pay for it with their life.

Sadly, I don't see that happening. We will do what we always do: kick the can down the road forever. And when we catch up to it, pass the buck onto the backs of the taxpayers.

[SickAndBroke]

That's how deeply the housing bubble is ingrained into our collective pshyches. Not until real people like Mr and Mrs Jones are literally murdered over it or dragged to prison will we snap out of it.

I see this too, there are still some very stable pockets of neighborhoods that had little speculation, but the few houses that fall under these bad
loans are a threat to the guy next door that has paid his debtor 20 years typically these stable payers are older conservative and are very pissed that the guy is living for free while the banks hide the bad deals.
It is still better to get the squatter out as soon as possible because it just
adds to the mindset if the guy next store gets 150k for nonperformance
then where's mine? the stable guy is being drug down by the losers!

[le roi]

based on my local price research, combined with observations of local homeowner's perspectives, I have decided that the concept of the 'stable neighborhood' is mostly, but not entirely, a fantasy.

you didn't need to have bogus loans in your neighborhood to benefit from rising prices, and you don't need to have foreclosures in your neighborhood to suffer from falling prices.