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Never mind they don't live where we live and know what we know and experience what we do, they know better.
I think the issue with experience is that this generation never experienced deflation which is what we're going through now. While people may have 20, 30 years experience, they've never had this experience. Last time we had deflation was during the Great Depression and most of those that lived through that are not alive.
Almost 100% have only lived through inflation, and everything going up. This is really unchartered waters for all of us. I don't think anyone can really predict what will happen. Then add to what the government will do as well as what comes out of these G-20 meetings. Who knows what will happen?!
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,591,875 times
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Quote:
Originally Posted by sheenie2000
Does anyone have numbers on how many people actually bought a McMansion on a salary of 40K? I see a lot of posts flying around that mention this. But in the grand scheme of things was the dollar amount really that large for those that did this? Was the total in trillions or just some billions?
I'm wondering who made the largest risks in total dollar amounts? I'm willing to bet that the largest risk were the banks/investment companies with CDSs. I think those bets were far larger than the guy who bought a 500K house when he shouldn't have.
Can a person get a 120K house in Georgia if 40K is a decent salary?
Absolutely they can, Sheenie. The problem IS, they don't want the $120k house.
If the spouse makes an additional $40k a year, do you think they will be looking at buying the $120k house or the $240k house?
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,591,875 times
Reputation: 677
Quote:
Originally Posted by sheenie2000
I think the issue with experience is that this generation never experienced deflation which is what we're going through now. While people may have 20, 30 years experience, they've never had this experience. Last time we had deflation was during the Great Depression and most of those that lived through that are not alive.
Almost 100% have only lived through inflation, and everything going up. This is really unchartered waters for all of us. I don't think anyone can really predict what will happen. Then add to what the government will do as well as what comes out of these G-20 meetings. Who knows what will happen?!
I think you are absolutely right. Very, very few in living memory have experienced what we are experiencing now. It scares alot of people. Me included. So it don't sit well that some people can be rejoicing over such horrendous events..
Last edited by PotterGeek; 04-18-2009 at 12:15 PM..
I think you are absolutely right. Very, very few in living memory have experienced what we are experiencing now. It scares alot of people. Me included. So I don't it well that some people can be rejoicing over such horrendous events..
Sadly, in a capitalistic system there are winners and losers and of course the winners are rejoicing. Anyhow, there is an equilibrium, and generally speaking the "market" would find that equilibrium where price levels, affordability, incomes, wages, jobs, etc. etc. meet.
Ie, consumption + debt = production capacity (like Bale002 in the economy forum would state).
We as a nation can not continue to use credit and reduced production to sustain our living. Wages have to fall, cost of living fall, and other nations rise which will force us to produce for ourselves.
Things will equalize eventually Potter Geek, but things will definitely have to change if America is to actually survive in the long haul. I don't foresee home prices going up any time soon unless the bankers and the powers to be want to "test" Americans appetite for credit and eventual self destruction.
Are Americans going to fall for another credit expansion? I don't know. I hope not. There are signs that show we will... but we shall see.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,591,875 times
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Quote:
Originally Posted by chuck22b
Sadly, in a capitalistic system there are winners and losers and of course the winners are rejoicing. Anyhow, there is an equilibrium, and generally speaking the "market" would find that equilibrium where price levels, affordability, incomes, wages, jobs, etc. etc. meet.
Ie, consumption + debt = production capacity (like Bale002 in the economy forum would state).
We as a nation can not continue to use credit and reduced production to sustain our living. Wages have to fall, cost of living fall, and other nations rise which will force us to produce for ourselves.
Things will equalize eventually Potter Geek, but things will definitely have to change if America is to actually survive in the long haul. I don't foresee home prices going up any time soon unless the bankers and the powers to be want to "test" Americans appetite for credit and eventual self destruction.
Are Americans going to fall for another credit expansion? I don't know. I hope not. There are signs that show we will... but we shall see.
-chuck22b
Maybe you're right, chuck22b. But even as a "winner" myself in this market, while I'm glad I got a great deal, I still find it in very bad taste to "rejoice" while so many are losing so much. And alot of those folks had no stake in real estate at all. Too many people are losing jobs as a result of this economic downturn. It's nothing to be boasting about, period.
Maybe you're right, chuck22b. But even as a "winner" myself in this market, while I'm glad I got a great deal, I still find it in very bad taste to "rejoice" while so many are losing so much. And alot of those folks had no stake in real estate at all. Too many people are losing jobs as a result of this economic downturn. It's nothing to be boasting about, period.
Again no one is "boasting" about anyone losing their jobs. The people in denial will throw anything out there to see what sticks if it doesn't fit with their views. What people are "rejoicing" about is that real estate is finally coming back down to more realistic levels where people can finally purchase a decent home. The only ones that obviously don't appreciate the current state of the market are ones that jumped in too soon, got hosed, cannot sell, etc. and this isn't about them at all. I guess fancy put me on ignore because the facts hit a bit close to home with her,she is a real estate agent so I'm sure she is going through a difficult time and that's okay I sympathize with her to a degree. America is a capitalist system and operates on supply and demand. With a super high forclosure rate, homes flooding back on the market, construction down, and tighter lending standards there really isn't an end to this in sight. If you want to throw unemployment into the mix and put words in anyones mouth then so be it, it is what it is.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,591,875 times
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Quote:
Originally Posted by LongIslandCitizen
Again no one is "boasting" about anyone losing their jobs. The people in denial will throw anything out there to see what sticks if it doesn't fit with their views. What people are "rejoicing" about is that real estate is finally coming back down to more realistic levels where people can finally purchase a decent home. The only ones that obviously don't appreciate the current state of the market are ones that jumped in too soon, got hosed, cannot sell, etc. and this isn't about them at all. I guess fancy put me on ignore because the facts hit a bit close to home with her,she is a real estate agent so I'm sure she is going through a difficult time and that's okay I sympathize with her to a degree. America is a capitalist system and operates on supply and demand. With a super high forclosure rate, homes flooding back on the market, construction down, and tighter lending standards there really isn't an end to this in sight. If you want to throw unemployment into the mix and put words in anyones mouth then so be it, it is what it is.
I understand what you're trying to say. What I'm trying to say, is that the downturn in the re market encompasses so much more than the benefit of lower prices for a select few. At least I view it in that scope. And while the risk of the rest of it: unemployment, foreclosures, etc is greater than the dubious few that might get in at the bottom, well, it's just not worth the overall balance of a healthy economy, IMO. So while you say you don't rejoice in the things lower home prices brings such as unemployment, etc...yes, you really do. You might not admit that even to yourself, but you do. Because it's all entangled together, unfortunately. There is no cherry picking. You are an opportunist.
And I can promise you...I'm not in denial
Last edited by PotterGeek; 04-18-2009 at 02:09 PM..
Again no one is "boasting" about anyone losing their jobs. The people in denial will throw anything out there to see what sticks if it doesn't fit with their views. What people are "rejoicing" about is that real estate is finally coming back down to more realistic levels where people can finally purchase a decent home. The onlyonesthat obviously don't appreciate the current state of the market areones that jumped in too soon, got hosed, cannot sell, etc. and thisisn't about them at all. I guess fancy put me on ignore because the facts hit a bit close to home with her,she is a real estate agent so I'm sure she is going through a difficult time and that's okay I sympathize with her to a degree. America is a capitalist system and operates on supply and demand. With a super high forclosure rate, homes flooding back on the market, construction down, and tighter lending standards there really isn't an end to this in sight. If you want to throw unemployment into the mix and put words in anyones mouth then so be it, it is what it is.
What a crock of $h!t. You honestly believe the only ones in support of RE holding value and recovering from this last few years are the ones as listed above in BOLD? None of the above apply to MOST, in the resale market of traditional home selling and buying. A home is and always has been an appreciatable assest that appreciates at a steady, reasonable rate over time. We are not talking about flippers, those that bought and sold in the peak and made a killing, those that bought at peak with no money in it, that's a given that these idiots should never have been allowed in the market. But to the millions and millions of others who bought a home for all the right reasons and have been PAYING for it as they agreed to- you could not have made a more ridiculous blanket statement.
I understand what you're trying to say. What I'm trying to say, is that the downturn in the re market encompasses so much more than the benefit of lower prices for a select few. At least I view it in that scope. And while the risk of the rest of it: unemployment, foreclosures, etc is greater than the dubious few that might get in at the bottom, well, it's just not worth the overall balance of a healthy economy, IMO. So while you say you don't rejoice in the things lower home prices brings such as unemployment, etc...yes, you really do. You might not admit that even to yourself, but you do. Because it's all entangled together, unfortunately. There is no cherry picking. You are an opportunist.
And I can promise you...I'm not in denial
Tried to rep you- need to spread it around since it wont' let me. You put it better than I did- good job. And those same opportunists who might actually buy something in this incredibly cheap market will most CERTAINLY expect their home to appreciate from the time they leave the closing table!
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