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What's common sense, is that in the HOUSING MARKET - BOTH the buyer AND the seller ARE CONSUMERS.
When home prices go up SOME comsumers are at a disadvantage while OTHER consumers are at an advantage - likewise when PRICES GO DOWN some consumers are at an advantage while others are at a disadvantage - but for the economy AS A WHOLE it is NOT HEALTHY for millions of homeowners to be UNDER WATER - nor is it healthy for economy AS A WHOLE for home prices to be depressed to the point where homebuilders can't make money, because under those conditions they WON'T build homes and thus WON'T hire constructions crews nor buy materials.
That UNHEALTHY situation is now in the process of being corrected - and that's a GOOD THING for the economy AS A WHOLE.
If the price for homes gets too high, folks won't buy them and the price will drop again - you SHOULD understand that is the FREE MARKET AT WORK. And since people are STILL BUYING HOMES then apparently homes are NOT overpriced. Again, that's just common sense. You say the "CONSUMER does not want to pay" - but apparently they are perfectly willing to do so - since NO ONE is FORCED to BUY a home. If the price is too high, the consumer doesn't HAVE to buy. It's not a necessity to OWN your home. It's just the free-market at work. Do you have a problem with a free -market economy? I thought you were a Right-wing guy - aren't you folks supposed to CHAMPION the free-market? What? Do you want the government putting price controls on home prices now - telling people what they can sell their house for?
Since homes ARE SELLING at the higher prices, then apparently there are PLENTY of people out there both willing AND able to buy (funny how that's the case in an economy which you folks claim is "so bad").
Ken
"BOTH the buyer AND the seller ARE CONSUMERS." LMAO Now I've heard it all. That has got to be one of the dumbest statements you've ever made.
Again no one, except the seller, (called the producer), wants prices to go up. Once again we the people want prices to go down so we can spend it on other things. No one in their right mind wants the price of the single most expensive item they'll purchase, to be high.
BTW it wasn't the free market that drove up housing prices which lead to a bubble which lead to a collapse. It's called the concept of free money. The exact same thing that is causing the cost of colleges to sky rocket.
You're posts are a joke when it comes to economics.
Last edited by Loveshiscountry; 03-31-2014 at 05:21 AM..
When something hits rock bottom it only has one way to go. Gee how intuitive of you.
When we hit rock bottom, a lot of people claimed we were going to fall a lot further and that food riots etc were coming. In other words your argument is true only if people knew we were at the bottom, which did not happen. Some knew, and some didn't. Those who knew, invested in the stock market and housing, and those who didn't put their money on stocking up on guns, ammo and canned foods. I am very happy I invested wisely back in 2009.
When we hit rock bottom, a lot of people claimed we were going to fall a lot further and that food riots etc were coming. In other words your argument is true only if people knew we were at the bottom, which did not happen. Some knew, and some didn't. Those who knew, invested in the stock market and housing, and those who didn't put their money on stocking up on guns, ammo and canned foods. I am very happy I invested wisely back in 2009.
But left wing kooks like to constantly tell us that Obama saved us from all of that happening..
But left wing kooks like to constantly tell us that Obama saved us from all of that happening..
I guess I didn't get the memo. Personally I was one of those people who saw early 2009 as the bottom, and invested in stocks as opposed to canned foods. If you read my posts from back them, you'll see me refer to that time as the opportunity of a lifetime.
"BOTH the buyer AND the seller ARE CONSUMERS." LMAO Now I've heard it all. That has got to be one of the dumbest statements you've ever made.
Again no one, except the seller, (called the producer), wants prices to go up. Once again we the people want prices to go down so we can spend it on other things. No one in their right mind wants the price of the single most expensive item they'll purchase, to be high.
BTW it wasn't the free market that drove up housing prices which lead to a bubble which lead to a collapse. It's called the concept of free money. The exact same thing that is causing the cost of colleges to sky rocket.
You're posts are a joke when it comes to economics.
Yet more insults because you can't make an intelligent case.
Yes, in an existing homes both the seller and the buyer are members of the general public and are therefore CONSUMERS. And there are still 6.4 million American homeowners underwater - which is FAR fewer than there used to be (thank goodness) - and YES those homeowners WANT prices to RISE - often today that's the case EVEN IF THEY INTEND TO BUY ANOTHER HOME - for the simple reason that many sellers today are babyboomers who no longer need a large home and looking for a smaller, less expensive home that's easier to heat/clean/maintain, but in order to do that they first need to be able to GET OUT FROM UNDER the home the currently own - and if they are underwater that means they want prices to RISE. NO ONE likes to lose money when they sell their home - NO ONE (even if they plan to buy another home).
Furthermore, it's clearly not good for the overall economy for prices to be sky-high, but's also not good for prices to be so low that builders can't make money (which was the case back in 2008/2009). If builders can't make money they don't build which means they don't hire and if they don't hire, workers don't have jobs. It's not that complicated a concept. "Free market" boosters like yourself should understand that.
And, gee I didn't know that money was "free" - and to think I was paying INTEREST on my mortgage all those years when I could have just had that money for "free".
Since money is "free" we should all be ROLLING IN DOUGH.
And, gee I didn't know that money was "free" - and to think I was paying INTEREST on my mortgage all those years when I could have just had that money for "free".
Since money is "free" we should all be ROLLING IN DOUGH.
Ken
Very loose credit is practically "free money".
As long as people pay back all is good.
And we saw what happened when all those mortgages reset and payments soared.
Very loose credit is practically "free money".
As long as people pay back all is good.
And we saw what happened when all those mortgages reset and payments soared.
If you have to REPAY IT WITH INTEREST, it's NOT "free".
"Cheap" is NOT "Free".
The whole "it's free money" thing is another one of those nonsense sayings frequently used by wingnuts that has no relationship to reality whatsoever.
If you have to REPAY IT WITH INTEREST, it's NOT "free".
"Cheap" is NOT "Free".
The whole "it's free money" thing is another one of those nonsense sayings frequently used by wingnuts that has no relationship to reality whatsoever.
Ken
Go look at how some of those "exotic" mortgages got set up.
There were people who indeed got "free money".
That's how the "flipping" craze took off.
You are taking the term literally, not figuratively.
If you have to REPAY IT WITH INTEREST, it's NOT "free".
"Cheap" is NOT "Free".
The whole "it's free money" thing is another one of those nonsense sayings frequently used by wingnuts that has no relationship to reality whatsoever.
Ken
There is certainly nothing free about taking, and paying back a mortgage. People don't know what they are talking about.
There is certainly nothing free about taking, and paying back a mortgage. People don't know what they are talking about.
You also are taking the term literally.
Call it very loose credit standards then if you will.
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