Broke-- The New American Dream

Quote from PohPoh:

The Majority??
Hardly Surf...

Think about it - middle class folks get lucky...their house prices rises substantially, and they upgrade to a house beyond their means, and sell their first house to a Subprime borrower...
Now you have 2 losers...
And I assure you, that is the majority...
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or how about....Person A's home value goes up 3 times in less than 4 years and Person A cashes out on the difference between the New Equity and what he owes..Person A goes out and spends his money on stupid shit and 3 years later finds out he owes more than what the New home value is....only person who won there is the guy who sold personA the BENZ he didnt need...

or how about person B buys a house which an appraiser appraised at $750k when in fact it is only really worth and should have been appraised at $500k...person B gets $750k loan , buys house for $750k gets a kick back from owner who is involved in the scam and the new onwer walks away from the house...netting $250k...in this case BOTH people win...:D
 
Quote from marketsurfer:

your leaving out the other side of EVERY transaction. everyone who buys at the top, a corresponding person is selling and winning.
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That is true, but just by looking at statistics you can't tell the REASON why a homeowner is selling. There is a huge difference between:

1. Lived in the house for 25 years, kids moved out, time to get a smaller house.

or

2. Just bought the house 2 months ago and got an offer with a 30% profit.

And even in the first case, since they still have to buy a new, but smaller house, because of the bubble, they are going to pay more than in normal times, so they are still effected and gonna be less of a winner, specially if that house 3 years later worths 40% less....


The same can be said on the buy side, huge difference between:

1. One is trying to buy his first house to live in.

or

2. Speculator is having his 5th house.
 
Quote from ElCubano:

or how about....Person A's home value goes up 3 times in less than 4 years and Person A cashes out on the difference between the New Equity and what he owes..Person A goes out and spends his money on stupid shit and 3 years later finds out he owes more than what the New home value is....only person who won there is the guy who sold him the BENZ he didnt need...
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yeah..same deal...
while not EVERYONE did this - I'm sure there were a minority of smart folks who realized that home purchases were not golden geese....
But I imagine that most are not that smart...
 
Quote from Mecro:

I state by what I said, your film, while it seems very interesting & definitely worth watching, is spreading dis-info.

You have not put in the research to see what exactly is happening and why. The Average Joe have little to do with it, even if they were an integral part of the process. Since you disagree, let me point your attention to the fact that the bailout & financial crisis are focused on the DERIVATIVES not the actual mortgages.

Blaming the media serves little purpose as well, they just jump along for the ride, they had nothing to do with the derivatives.
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Blaming the avg Joe is akin to Blaming a crack addict for stealing the last Rock you left on the counter...even though you told him a million times not to take it....silly to balme the avg joe....some have never seen such easy money why on earth would we think they wouldnt take it???
 
Quote from PohPoh:

yeah..same deal...
while not EVERYONE did this - I'm sure there were a minority of smart folks who realized that home purchases were not golden geese....
But I imagine that most are not that smart...
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alot of people I know did this....alot of people have been living on credit for many many years to live beyond their salaries...most of it came from the increase in their homes equity....
 
Quote from ElCubano:

Blaming the avg Joe is akin to Blaming a crack addict for stealing the last Rock you left on the counter...even though you told him a million times not to take it....silly to balme the avg joe....some have never seen such easy money why on earth would we think they wouldnt take it???
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I make the case that there are many to blame, but to not place some blame on the back of Average Joe is mind boggling to me. And yes, the crack addict gets more blame than the rock sitting there. The only way to not be an addict is to accept personal responsibility, not point fingers at everyone and everything.
 
Quote from Trend Following:

I make the case that there are many to blame, but to not place some blame on the back of Average Joe is mind boggling to me.
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yes the can be blamed for taking free money....its like blaming a kid for eating too much candy....cmon the avg joe will take what they can....now the avg BANKER should know better than to lend to just any avg. joe....peace
 
Quote from ElCubano:

yes the can be blamed for taking free money....its like blaming a kid for eating too much candy....cmon the avg joe will take what they can....now the avg BANKER should know better than to lend to just any avg. joe....peace
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If you don't blame the kid, who do you blame...the candy? Not every kid is fat.
 
I agree that there is a lot of blame to go around. ALL adults should accept a certain amount of responsibility for their actions, some perhaps more than others.
 
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