Posted on 06/21/2005 9:42:59 AM PDT by ambrose
End o' the world bump
Yep... 70 degrees in February... that sucks :)
Please understand that the MSM sees the housing boom as the only thing holding up this economy and consumer spending. If they can derail that boom and wreck the economy, they can wreck George W. Bush and set the table for Hillary. That is the primary reason why the MSM is in total lockstep manic mode about this.
Further evidence of this comes today from Morgan Stanley's Chief Economist today, Steven Roach. roach blasts the Fed for "an irresponsible, reckless monetary policy," holding rates artificially low, "fooling asset-dependent American consumers to keep on binge-buying." Roach, who has been a HUGE contibutor to Hillary Clinton and the DNC, actually says "We need politically independent central bankers. That's what's missing right now". This clearly means that Roach wants the Fed to ratchet up rates fast to kill the housing boom and destroy Bush.
Don't allow the MSM and Hillary stooges to destroy your confidence in the housing market, which is strong for fundamental reasons which are quite sound. DON'T PANIC. That is what the Left want you to do.
It is the humidity that would kill me.
"...because in NYC the same apartment would rent for $8,000 to $10,000?"
Ah, the success of rent control. Liberal policies at work......
"The land is much cheaper,...."
Until those same liberals start to institute the land restrictions they successfully got passed in their previous hometowns. Then they'll wonder why the price of land goes up to the point that they can no longer afford it.
Not in housing - people don't PAY for houses, they get mortgage loans and then pay off the loan. The irresponsible acts of the lenders, in so-called "creative" financing, have enabled the skyrocketing prices of real estate.
I hope this bubble bursts and soon, and lenders return to sane, responsible, and non-predatory practices.
There is almost no rent control left. It's just a pricey city to live in...
Well, there *is* that....
"There is almost no rent control left."
Available or that the policy no longer exists?
"It's just a pricey city to live in..."
Probably a good portion of which depends on the answer you provide to my first question.
Quote: No problem. They'll just walk away from the loans and let the banks (or Fannie Mae or Freddie Mac) take the hit.
Md Dad sold some real estate on the side in early '80's when interest rates were 14-16% and housing prices dropped like a rock. He remembers couples trying/hoping to sell homes for 3/4 of what they paid and being happy with that outcome. Back then homes in our area were 50-60K and if you got hit with a 10K loss you wrote a check. Today people will be getting hit up for a $150-200K loss and will not have the money when the piper comes calling.
I think it will be worse today when it hits because of all the speculating/intrest only loans and HIGH preoperty taxes to come
Is Atlanta on the list of bubble real estate markets?
...and then there's the kudzu -- which comes in through the windows at night, logs on to porn on your computer, eats all the food out of the fridge and plays with household pets in ways that psychologically damage them for life.
You said, "The word 'may' should be disallowed in story titles."
You're right...
But "spinning" the news is SO much more fun than simply reporting the news.
I seriously doubt it...
We're all gonna die!!!!
*****
You sh*t..I spit my coffee out when I came to your post.
All "new" housing is pretty much free of rent control. There are exceptions, such as when a developer cuts a deal for tax breaks to offer "affordable" housing to middle income tenants, etc.
Such is life.
Be prepared.
5.56mm
The biggest danger now is from people who bought second or third homes as investments. While an owner-occupier may be able to/willing to ride out any correction, the same cannot be said for the "investors"... they'll drop their properties at the first sign of trouble.
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