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Stop gloating over declining home prices - it hurts
- Thread starter wilburbear
- Start date
Quote from seasonedpro:
They lack the understanding of the financials to fully understand what they are getting into as the brokers and mortgage bankers of the world have enabled those who have no business in this business to get in with risky loan products.
Stop blaming the brokers and bankers.
The greedy house and condo flippers get what they deserve. They caused the "average joe" to get priced out of many neighborhoods, and the "average joe" ended up paying obscene prices just to get his family into a starter home.
Over the last few years I've read countless articles about hairdressers, schoolteachers, blue collar workers, retirees, etc. who were buying multiple homes (mostly pre-construction, sight unseen, zero down payments, etc). Those same assholes who inflated asking prices are the ones crying now that the music stopped.
Those greedy scumbags should look in the mirror and blame themselves for jumping on the bandwagon without a clue as to how markets work.
I have no pity for the flippers, only for the average guy who got royally reemed during the last years of the housing bubble.
Quote from seasonedpro:
I know what you are saying and agree pigs do get slaughtered, I just see many of the people getting hurt today aren't sophisticated speculators and aren't necessarily greedy by nature. They lack the understanding of the financials to fully understand what they are getting into as the brokers and mortgage bankers of the world have enabled those who have no business in this business to get in with risky loan products.
In that case i think the banks and mortagage brokers understood the market and tried to taylor product to a consumer that would use them...The market was created by the consumer...not the bank.
Go to a low end used car lot and you will not see prices on the windshield...but the cost of a monthly payment. Same deal really.
the consumer says "how can i get whatever i want, even though i dont have the money. i dont care about tomorrow, i want it today". and the banks say "you know what...i think we may be able to do something for you"
people KNOW what they are getting themselves into...but i am not sure they care about the consequences. the feel the momentary elation is far greater than the long term headache. the reward to them (or potential reward) is worth the risk.
wouldnt you agree?
The American dream is not to own a home.
It's to own 3 or 4 of them, and flip them for 50K every 3 months.
That's what these morons were trying to do and no one should feel bad for them.
When one of these Sub-prime companies shits a brick I will laugh my ass off..
Just as I laughed my ass off when a waitress told me 2 years ago that she bought a 600K home for zero down.
I hear constantly "ALL I DO IS REAL ESTATE. THEY AIN'T MAKING ANY MORE OF IT. I CAN SEE IT, TOUCH IT. I CAN'T LOSE".
These are the same dickheads who bought tech stocks in 1999 like they were going out of style.
People just can't seem to remember the past.
It's to own 3 or 4 of them, and flip them for 50K every 3 months.
That's what these morons were trying to do and no one should feel bad for them.
When one of these Sub-prime companies shits a brick I will laugh my ass off..
Just as I laughed my ass off when a waitress told me 2 years ago that she bought a 600K home for zero down.
I hear constantly "ALL I DO IS REAL ESTATE. THEY AIN'T MAKING ANY MORE OF IT. I CAN SEE IT, TOUCH IT. I CAN'T LOSE".
These are the same dickheads who bought tech stocks in 1999 like they were going out of style.
People just can't seem to remember the past.
I think real estate has been a hedge against high inflation and a weak dollar. It won't collapse, but its gains to the upside are going to be tougher. Pabst brings up a good point about fiat currencies. The government will try to print its way out of any problem. Thats why there are thousands of failed currencies. With the amount of debt outstanding the US is going to print money like never before when asset prices start to drag down growth. We are living through one of the greatest inflation/credit booms ever. For all the talk about the dow and sp, gold has gained amost triple.
"So many people were bragging about how much $$$ they were making and how SMART they were. "
a bubble is a bubble is a bubble.
no difference between dutch tulip bulbs, gogo nasdaq tech stocks, or real estate
when EVERYBODY thinks you can't lose (in real estate, etc.), it's a sure thing, bla bla bla - that's when yer near a top
my ultimate real estate topping sign was when CNBC interviewed two vegas strippers who are now real estate speculators, and they said "you can't lose"
that was about 6 months ago or so iirc.
fwiw, i have one house to sell and am selling it in january. in my area, houses are still moving up, but more slowly than they have been
it's the gogo markets that have taken a hit. that's how all bubbles work. the most overextended take the biggest hit. duh
a bubble is a bubble is a bubble.
no difference between dutch tulip bulbs, gogo nasdaq tech stocks, or real estate
when EVERYBODY thinks you can't lose (in real estate, etc.), it's a sure thing, bla bla bla - that's when yer near a top
my ultimate real estate topping sign was when CNBC interviewed two vegas strippers who are now real estate speculators, and they said "you can't lose"
that was about 6 months ago or so iirc.
fwiw, i have one house to sell and am selling it in january. in my area, houses are still moving up, but more slowly than they have been
it's the gogo markets that have taken a hit. that's how all bubbles work. the most overextended take the biggest hit. duh
getting back to the who actually owns a home question.
I will say this although I could have made money as a lawyer, it was a lot more fun to make it as a trader and then a real estate investor. Unless you have been developing a career and had no time for speculation, if you were on the sidelines for both, I would have to say you better wake up for the next time we have the greatest asset bubble in history -- twice.
disclaimer, I now own only one home. I have about 300 in equity in it and I would prefer to sell it but I have a wife and three kids to think about. I no longer see myself as an R.E. investor, just a home owner.
I will say this although I could have made money as a lawyer, it was a lot more fun to make it as a trader and then a real estate investor. Unless you have been developing a career and had no time for speculation, if you were on the sidelines for both, I would have to say you better wake up for the next time we have the greatest asset bubble in history -- twice.
disclaimer, I now own only one home. I have about 300 in equity in it and I would prefer to sell it but I have a wife and three kids to think about. I no longer see myself as an R.E. investor, just a home owner.
Ratboy,
I'm sure you have dealt with these people and there is nothing uglier than arrogance and I do know the nature of how viscous these forums get.
Longhorns,
you say the bankers aren't too blame but then talk about how zero down got us into this, slight contradiction.
Dac,
I disagree. These products create the demand. Do you think the consumer came up with interest only loans, no down no interest for 12 months, or negative amortization loans? Bankers create these products to manufacture a market.
I'm not saying some don't deserve what they are getting, some do. But there are others that didn't have a clue, were duped, or just saw how big money was being made and jumped on the bandwagon. If you want to fault someone for being uneducated, lacking intelligence, ugly, mentally challenged, etc. go right ahead.
I'm sure you have dealt with these people and there is nothing uglier than arrogance and I do know the nature of how viscous these forums get.
Longhorns,
you say the bankers aren't too blame but then talk about how zero down got us into this, slight contradiction.
Dac,
I disagree. These products create the demand. Do you think the consumer came up with interest only loans, no down no interest for 12 months, or negative amortization loans? Bankers create these products to manufacture a market.
I'm not saying some don't deserve what they are getting, some do. But there are others that didn't have a clue, were duped, or just saw how big money was being made and jumped on the bandwagon. If you want to fault someone for being uneducated, lacking intelligence, ugly, mentally challenged, etc. go right ahead.
Most people KNOW what house they can and cant afford. If it feels too expensive and a little uncomfortable then it probably is. I have read a ton of articles where homeowners are upside down and just cant figure out what happened. No one forced those people to sign on the dotted line with a loan they didnt understand. It just like trading ...you and you alone are responsible for your actions. People will drive 10 miles out of the way to save a nickle per gallon on gas but jump into a real estate without doing any homework what so ever. I dont wish bad things on people but in almost every case its their own damn fault. jim