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i know we wanted a house ,we bought a house...quite a few folks we know sold their homes recently which means they had buyers
Ah, it all makes sense now... plain and simple buyer's remorse.
Well, it's unfortunate that you let yourself get bullied into overpaying for a home by the boss. It is what it is, though. The fact that you could afford it (and others bought who are likely in the same tax bracket as you) doesn't equate to the masses. The majority of the financial issues right now are impacting the disappearing middle class. If you take the NIMBY attitude and ignore it - rock on... sit in your backyard sipping your martini, pushing your portfolio around on your iPhone, and laugh at the peasants.
The fed continues to hold rates low, banks can borrow for zero and lend on the short end for 2 or 300 bps. The banks are making money hand over fist in order to boost their capital levels. The banks in turn are lending out their capital to investment houses who are making speculative bets on the commodities market. Oil rising is not a function of demand, oil is now a financial tool, to make bets. With over 6 million barrels of excess daily capacity to pump, and prices are rising. Goes back to the lack of rationality in the marketplace. Every time some gets a delivery of oil to their house or fills up the car, guess what? the biggest thieves are the investment banks, hedge funds and wealthy.
If the government was serious about helping Joe Consumer out, they'd enforce a margin rate of 50%, not this bs 10 or 20%. The other tool, is to require delivery of the oil, not this bs of financial futures in oil. Where would you like me to park that 500,000 barrels of Brent or West Texas Sour? The oil market today has become a CASINO where the big boys roll.
In his defense...they did from a financial technical standpoint stop the purchase program of mortgage securities last week as they announced in their March meeting. This was noted as some of the reason why rates of course have been "artificially" low...though if you think about it, rates are always artificially high/low/indifferent. It is lending programs and rate decisions from agencies like the Fed that impact a great deal of this...
To MikeyKid, Me-thinks you are projecting a lot of your frustration onto MathJak. His opinion differs from yours, no need to steretype and bash. Just my two cents.
To MikeyKid, Me-thinks you are projecting a lot of your frustration onto MathJak. His opinion differs from yours, no need to steretype and bash. Just my two cents.
aw - I didn't mean that. I meant to sound like a jerk, not frustrated. Darn it!
In his defense...they did from a financial technical standpoint stop the purchase program of mortgage securities last week as they announced in their March meeting. This was noted as some of the reason why rates of course have been "artificially" low...though if you think about it, rates are always artificially high/low/indifferent. It is lending programs and rate decisions from agencies like the Fed that impact a great deal of this...
To MikeyKid, Me-thinks you are projecting a lot of your frustration onto MathJak. His opinion differs from yours, no need to steretype and bash. Just my two cents.
Of course, I know about the ending of the MBS purchases, just trying to make the point that the Fed has many tools at it's disposal they use to manipulate rates. In doing so, they continue to create artificial bubbles - commodities are just one example. They still have not learned their lesson. You can keep rates low, but if the consumer which drives 70% of the economy has less money to spend due to higher inflation (now that's another topic in itself) of everyday goods like "food and energy" which is conveniently excluded from CPI then guess what, the GDP will slow.
As for jobs picking up, yeah, would you like ketchup with your burger?
The layoffs are still ongoing...don't be fooled. Perhaps with low intensity, but nonetheless they are continuing.
funny thing is...if the doomsday scenario had actually played out and everyone would have taken their due 'rinsing' weak hands would have exited the market, more Ibanks would have faultered and defaulted, house values would have plummeted much further, and even more regional and small banks would have gone out of business, not to mention companies that manage their cash via the cp market and other short term instruments....plus joe main street would have lost more jobs and savings....at the end of the day, I would not have wanted that scenario, It would have taken much longer for the market to come out of that phase, than what we have in our hands today. Problem is that we will never know who the real crooks are and that leaves more weak, greedy hands in the market than the market should support. In turn this leaves us with false bottom...and more problematically, false promises and expectations. The govmt. should not have to rescue everyone....at the end of all this we will never know what the true economic potential should or could have been in this country since it has been manipulated beyond belief at this point...not complaining about it, this beats living in a lot of other countries, but when people get on their high hourse and say this is a true capitalist society then they are not only kidding but lying to themselves.
Ah, it all makes sense now... plain and simple buyer's remorse.
Well, it's unfortunate that you let yourself get bullied into overpaying for a home by the boss. It is what it is, though. The fact that you could afford it (and others bought who are likely in the same tax bracket as you) doesn't equate to the masses. The majority of the financial issues right now are impacting the disappearing middle class. If you take the NIMBY attitude and ignore it - rock on... sit in your backyard sipping your martini, pushing your portfolio around on your iPhone, and laugh at the peasants.
Your assumptions are incorrect. He did not buy a single-family home recently to live in.
funny thing is...if the doomsday scenario had actually played out and everyone would have taken their due 'rinsing' weak hands would have exited the market, more Ibanks would have faultered and defaulted, house values would have plummeted much further, and even more regional and small banks would have gone out of business, not to mention companies that manage their cash via the cp market and other short term instruments....plus joe main street would have lost more jobs and savings....at the end of the day, I would not have wanted that scenario, It would have taken much longer for the market to come out of that phase, than what we have in our hands today. Problem is that we will never know who the real crooks are and that leaves more weak, greedy hands in the market than the market should support. In turn this leaves us with false bottom...and more problematically, false promises and expectations. The govmt. should not have to rescue everyone....at the end of all this we will never know what the true economic potential should or could have been in this country since it has been manipulated beyond belief at this point...not complaining about it, this beats living in a lot of other countries, but when people get on their high hourse and say this is a true capitalist society then they are not only kidding but lying to themselves.
My main issue - even going back to your OP, is that in some ways you speak about what is happening in almost a past tense. Kind of like we're "out of the woods"... Believe me I understand the old adages about buy on the rumor and sell on the news. We could very well "be out of it" well before the media tells us we are, but it's undeniable that all the economic indicators are being heavily manipulated by the govt and banks.
heres something you probley arent aware of either: we like to think our brains make even handed well thought out unbiased decisions about financial decisions.
well surprise!
research by jason zweig in his book our money our brains has found using modern brain scan imagery that as humans we are flawed.
we hate loosing money more then we like making money and our decision making ability is weighted on over weighting all the negative crap when we decide how to act when investing in things.
That is me. Once everything tanked I got extremely conservative because I decided I wanted to keep MY money and that's it ... I did not want to make major "gains" on paper which could easily turn into major "losses" including MY money. When the market recovered, I did not benefit from it much. Ironically everytime I started thinking about changing things there would be more jitters in the market (bad timing) and I would decide not to change things.
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You can keep rates low, but if the consumer which drives 70% of the economy has less money to spend due to higher inflation (now that's another topic in itself) of everyday goods like "food and energy" which is conveniently excluded from CPI then guess what, the GDP will slow.
