Are house prices really dropping? (Bethesda, Rockville: credit, broker, unemployment)

[lscalder]

Some American are not getting the big picture. If interest rates keep on dropping , the American dollar will continue to weaken. The lower the interest rate the less our dollar is worth. We do no thave any money to float around. If people stop buying we might as well all move to britain or another country. India no longer want to deal with dollars. Our money is worthless. Why is that? Because of Americans who only think about themselves. We have to start investing back into our economy to strengthen our dollar. America is becoming th eluaghing stock to 3rd world counties and develope countries.
The funny thing is I get it and i was not born in America but most born Americans are so blind they do not even see that their country is becoming a 3rd world country. Investors are pulling out of the country. China is starting to control more of America interest which means America will no longer own America, China will. India money which is worth much more then the American dollar which is pretty sad that a 3rd world country that American have always seen for years as been one of the pooriest country but now thei rmoney is worth more then the dollar. Well you know what if you guys feel its much better to not buy while middle class disappears,where we only see rich or poor. if you can not speak chinese you better learn. Canada monies have always value way less then the dollar but now canadian and the dollar is a $1 for a $1. If we contiue to ONLY think about ourselves you we will all suffer for those mistakes who only think about themselves and not America. I hope Americans will wake up and see the bigger picture if we stop investing into the housing market. The stock market will continue to crash until people start investing again into real estate. The oil,cars,stock market will continue to crash if the Real Estate market do not improve.

The American economy revolves around Real Estate market if it crash, we need to all get on our knees and pray because if you think its bad just wait intil those selfish Americans stop buying or investing into the economy. This have nothing to do with me I have another country that i belong to but my family is here, my business is here,my friends and family are here. I love living in this country but if it continues to be a laughing stock and the economy get worst or if majority of jobs get outsource to India or other countries, America will see plenty of Investors,rich,upper class,businesses all move to another country where people put their country first vs Its all me.

You can sit and wait but you might wait and see more and more banks closing which is happen right now. How are these banks getting the money to lend if their is no money in the economy? I guess no one think about that. People America have money. Our money is worth nothing, nothing nothing. We are becoming a laughing stocl but here we are only thinking about us.

[TuborgP]

Iscalder I hope you are able to sell your house soon. I understand you must be under a great deal of stress facing possible foreclosure.
While I know the days of financial recklessness coming back would help you we must avoid others falling into crisis. To help others understand the crisis you and your neighbors face I offer the following.
Loan crisis in Prince George's -- baltimoresun.com

[pythagras]

Originally Posted by pythagras

Unemployement is at historic lows. I can't think of many places around here who can't seem to get enough employees. It seems every place is understaffed these days.

I spoke too soon, unemployment now at 5%, still good, but it seems to be on the rise. link: Jobless rate hits 5 percent, 2-year high - Yahoo! News (broken link)

[Merlander]

Originally Posted by lscalder

Some American are not getting the big picture. If interest rates keep on dropping , the American dollar will continue to weaken. The lower the interest rate the less our dollar is worth.

There are some silver linings associated with the falling interest rates/dollar:

1) Falling interest rates will make homes more affordable for homebuyers, in time.

2) Also, a falling dollar creates inflationary pressure. Hard assets, like homes, do well in an inflationary environment.

3) A falling dollar means there will be greater economic incentives to keep American manufacturing jobs at home. This will in turn give more Americans the opp'y to purchase homes, and will eventually stoke demand.

For years, the US pursued a strong dollar policy. Although there are other factors at work, I think the official policy of the US Gov't is now a weak dollar policy.

[lscalder]

This have nothing to do with me. It so funny because Americans always think theya re smarter then other country but now I see most Americans are not as smart. If you see the government telling the country every single day we are heading to recession why not take heed. When the federal reserve cut interest rate it only hurts the economy even worst. We think it helps but it does not. When they cut interest rate the dollar get weaker each time. PEOPLE INDIA MONEY IS WORTH MUCH MORE THEN THE DOLLAR. WE ARE TALKING ABOUT A 3RD WORLD COUNTRY. OUR MONEY IS WORTHLESS IN INDIA.
Thnk you for your article it said it all but trust me their is alot more about the economy that is not in the article.

This have nothing to do with me. This is about America and the crisis we ALL FACE. If job rate continue I hope your job do not get outsourced to India.

[Merlander]

Originally Posted by lscalder

This have nothing to do with me. This is about America and the crisis we ALL FACE. If job rate continue I hope your job do not get outsourced to India.

Part of the reason so many jobs have been outsourced is because the dollar was strong. A weaker dollar will keep more jobs at home.

Consider China: They pursued a weak yuan policy for years, and as a result their economy is going bonkers.

I think our gov't is pursuing a weak dollar policy to counter the Chinese economy.

[pythagras]

Originally Posted by lscalder

This have nothing to do with me. It so funny because Americans always think theya re smarter then other country but now I see most Americans are not as smart. If you see the government telling the country every single day we are heading to recession why not take heed. When the federal reserve cut interest rate it only hurts the economy even worst. We think it helps but it does not. When they cut interest rate the dollar get weaker each time. PEOPLE INDIA MONEY IS WORTH MUCH MORE THEN THE DOLLAR. WE ARE TALKING ABOUT A 3RD WORLD COUNTRY. OUR MONEY IS WORTHLESS IN INDIA.
Thnk you for your article it said it all but trust me their is alot more about the economy that is not in the article.

This have nothing to do with me. This is about America and the crisis we ALL FACE. If job rate continue I hope your job do not get outsourced to India.

I think you're overreacting. I don't think America is necessarily smarter or better than any other country. India is one of those countries I think is poised for rapid growth and may indeed have more brainpower than us. I think its ironic that you are saying that Americans think we are better than everyone yet consistently put down India as some nation that shouldn't also enjoy wealth. Why can't they have a bigger piece of the pie? We are not better than them.

On another note, outsourcing to India has been driven both by cost and demand. IT types in the US seem to be highly sought after and seem to be doing better than ever. Maybe this won't last, maybe in the end we'll all be outsourced and unemployed. Outsourcing has its own problems, too, you know.

For example if I outsource *all* of my R&D to India, I have essentially turned my company into an Indian company. The expertise is over there, they are the ones who actually make things of value. Just because me, a management type, over here supposedly owns what they do doesn't matter if one day they all stop working on my stuff and decide that they can make a lot more money developing the stuff on their own and keeping all the money I'm saving by paying them $10-$15 an hour. They are the ones with the institutional knowledge of putting a product out, not me. They are the ones doing the actual work.

You could split your operation up into pieces and spread them halfway across the world in dozens of places. You may just end up with the same problem in smaller versions and it will definitely require more work keeping so many different places/cultures operational.

Anyway, its not so straightforward, we are not all going to get outsourced. Trust me there's plenty of work for Americans and Indians to do.

[Big M]

I find this post all too real, but also amusing too. Britain is even in a worse mess than the US, but about a year or two behind. In the UK for example,

i.e. The value of the pound is starting to drop,
-unemployment is rising,
-the average house price is 7+ times the average salary.
-wages are not rising in part due the influx of 100s of thousands of workers from eastern europe
-our manufacturing is dwindling/ outsourced
- foreclosures/ bankruptcies are rising

Believe me, you wouldn't want to live there.

Originally Posted by lscalder

If people really stop buying houses we might as well all move out the country and move to either britain,China or India. People do not get it continue buying because if you think it worst now you have no idea whats coming to this country. If you think foreclosure is high now wait until everyone starts renting and stop buying. Here is what will happen if people do not start buying:

1. Higher foreclosure
2. No more middle class, just rich and poor
3. unemployment rate will increase due to company not making a profit so they out source to other countries.
4. People loosing their jobs left and right
5. Crime rate will tripe in every state,county and city due to having plenty of vacant properties, which is already an issue right now.
6. American dollar will continue to decrease
7. Countries will stop trading in dollars because the dollar is too weak so now we will pay double or triple for everything we purchase because the world will trade in Euros.
8. very very low education system due to foreclosures less people payinf property tax which goes toward education.
9.All industry in America will disappear no money floating around so why stay or invest in a country with no money which is happening right now.

.

[ChosenGSR]

Iscalder is right, we live in a society that was designed to spend everything they make and over leverage ourselves to the nth degree. Everyone believes that they deserve a house, and all the latest and greatest that goes in it. Sadly our economy is getting to a point where basic economics are taking over and no matter how hard the fed tries to "prop" the market the truth will come out. In fact not everyone deserves to own, and not everyone can afford the latest and greatest plasmas. Our society is accustomed to negative savings rate, it's time to pay up.

[rswanson]

Historically home values have been less than the nations output of GDP (Gross Domestic Products). Sometime around 2001 or 02 that all changed and home values exceeded the GDP, which is a strong indicator that something is fundamentally and economically out of whack. According to some gurues until housing values make a correction that would bring them back in alignment to known long term historical values as it realtes to the overall economy (GDP) we're all in trouble....big trouble.

My 2 cnets is you'd better rent, wait, watch and see what happens well into 2008 before you buy because conditions are ripe for hard times and sweetheart deals ahead; especially at the unfortuante expense of those who have an ARM (Adujtable Rate Mortgages). Right now those people are between ouch, bing, bang and ka-boom.

Antacids anyone?