How much of the mortage crisis was caused by pure speculation

[HedgefundTrader2]

Quote from stock777:

on the part of scum flipping houses and condos, and now walking away from the loans?

I suspect it's a huge part of the problem, but maybe someone has the numbers.

Dont blame those who invested, blame those who didn't.

The crisis was not caused by people who invested in real estate. Its caused by the reluctant buyers and consumers who thought they can game the markets and get real estate on a cheap dime. These idiots where the real speculators.

 

[HedgefundTrader2]

Quote from crackedback:

ROTFLMAO at this one.

My old landlord had 4, yes FOUR, owner occupied homes purchased in a 2 year period.

In CA all the flippers were nailing 100% financing or as some I know of 80/15/5 owner occupied loans.. and the 5% was borrowed as well.

Your landlord? Means you never owned any real estate. Yet here you are passing Judgement on those who did?

Why did you not buy real estate when your landlord could? You were either not qualified to buy a house or you were speculating for the prices to crash and reluctant to buy even to this day. Had you done that you would not be paying rent today which goes down the drain and nowhere else.

 

[drtomaso]

Quote from HedgefundTrader2:

Your landlord? Means you never owned any real estate. Yet here you are passing Judgement on those who did?

Why did you not buy real estate when your landlord could? You were either not qualified to buy a house or you were speculating for the prices to crash and reluctant to buy even to this day. Had you done that you would not be paying rent today which goes down the drain and nowhere else.

I have never owned real estate, of any kind. I am, however, more qualified than most who have chosen to do so in the past 5 years. Am I the cause of the RE crash?

"Not Buying" for me was the wise investment strategy- in my area the cost of debt service (interest payments) less the tax deduction is greater than the cost of renting a similar rental unit. Interest payments go down the drain, and no where else.

 

[Trader50]

and HELOC

 

[crackedback]

Quote from HedgefundTrader2:

Your landlord? Means you never owned any real estate. Yet here you are passing Judgement on those who did?

Why did you not buy real estate when your landlord could? You were either not qualified to buy a house or you were speculating for the prices to crash and reluctant to buy even to this day. Had you done that you would not be paying rent today which goes down the drain and nowhere else.

Sold my house in 2005, moved to a new area, and decided to rent because I saw what was on the horizon. Homes were in the 200-265 per sq ft when I moved, now they aren't moving at 135/sq ft.

Your ASSumption is absolutely incorrect. You sound like a realtor. Throwing rent away??? How about not throwing my down payment into a fire pit. I'll buy the same house I lived in for less than half the 2005 price, with less down payment, smaller outstanding mortgage balance, lower property taxes and a lower monthly payment. Unqualified as charged.

I know the douchebag that did all my former landlords loans, the realtors and the escrow officers.

Some of you are ignorant.

Yes the run up was caused by rampant speculation.

p.s. most of my RENT is a deductible expense... HA!!!