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They'll all rent. And rents will go up. When rates went down, rents when down because the demand for rental property was low. So if rates go up, rents go up. Seems like if you really believe that mortgages are going to go to 10% or 15%, the smart move would be to buy a house for...

In my neck of the woods, the starter home costs are now slowly rising. Perhaps because with more stringent lending requirements, more people can only afford a smaller house. And people move due to job relocation, divorce, etc., every day. Note that I don't live in Miami or California, so my...

Ok, my response to that is...since when were San Diego, or those parts of Florida, or Vegas ever a barometer of the general housing market? Would you say your neighbor's town house was typical of the general market at any time? If not, then can you really use it to try to predict the downside...

Funny you say that. In my mind's eye, I picture someone like the newspaper editor in the comicbook Spiderman saying, yelling, "PARKER! Go get me something on this subprime thing. Its selling newspapers. You know, crying housewives, and that kind of thing! I want dispair! And get me some...

I think they really were/are that stupid. I was able to take a loan against a townhouse purchased one year earlier for up to 90% of its value (which exceeded the purchase price) and use that money as a down payment to buy a couple more. When we did that, I told my wife that the bank was stupid...

No way. Stop reading the newspapers. I don't agree with everything Ben Stein said in his recent article, but he made a good point about "irrational pessimism". This is it. We're in a dynamic system. You can't extrapolate like that. Just because an airliner is in a descent, does not...

Thanks for noticing. I just saw this quote in an on-line article about a Bernanke speech: ************* Instead, the Fed chief's speech stuck closely to steps the Fed is taking to prevent prospective homebuyers from getting burned in the future when they take out a mortgage. On this...

I can't deny that. Interest rates are STILL so darn low that anyone who can buy with a fixed loan will be real happy they did it in hindsight. And I can't see payments going much lower because they are a function of interest rates (low right now) and price (temporarily lower). Lastly, when...

Funny you say that. You know, traditionally, real estate was a refuge during inflationary times. Whether one believes that the cost of real estate at its peak was warranted or not, can we agree that the devalued dollar is increasing the cost of materials in these properties? How much does it...

Stop looking at the charts and look at the bigger picture fellas. We're going to get a new President and Administration. That has to be good for the dollar no matter who is elected. I'd hate to be short when it pops. SM

Don't know if ya'll noticed this, but as a response to inflation and competition, the pizzas are getting smaller. A "Medium" is what a small used to be, and a "Large" is what a medium used to be. But dammit, a buffet is still a buffet. SM

Good point on the stock buy back. That could help absorb some of the cash outs. Heck, for all I know, that could be going on right now. I've seen lots of companies invest excess cash that way lately to shore up stock prices. Agree with you on the P/E vs. interest rates. Interestingly...

Damn. Now that Obama is winning, she'll be impossible to live with. She'll probably cut my allowance too.

Agreed, but I'm driving home the point that these markets don't behave the same and aren't comparable. BTW, I get what you're saying about the idea that people are always buying stocks all the time...and you're right over the long term. Ever think about if it reversed? I mean, I think its...

With a Reit you can, but then you don't get the benefit of 10 to 1 leverage and a tax write-off on the purchase. If you buy outright, you can receive the asset now, and pay for it over 30 years. My father in law is still purchasing a house at 1980 prices with 2005 interest rates that he's...

Houses aren't stocks. Generally, if prices are lower than what you owe, you try not to sell. Not so with stocks. Also, generally when you sell a house, you buy another one. Can you imagine how the stock market would do if there were always new people buying stocks all the time and nobody...

Did you read the article you posted? It was stating that two economists had a certain opinion. Newspapers loved to trot out the bee experts who discussed how the african killer bees would take over, but it was a dynamic system and their own genetics were watered down. The newspapers...

I'm still waiting on the Killer Bees, Ebola, SARs, and the Bird Flu. Gloom sells newspapers... SM

Yeah, count me as a slow one. But I was raised to believe in personal responsibility. You don't sign a contract unless you'll carry it out or take the consequences. But because people don't, you have to set up your laws for the lowest common denominator. The people who have no fiscal...

***Hey, you're putting words in my mouth. I didn't say nothing about ARMs in my response. When I said, "It worked before", I was referring to putting down less than 20%. Like 5%. Heck, I don't think you should have to put anything down as long as you can pay the closing costs, have good...