Posted on 08/17/2005 4:22:52 AM PDT by thinking4me
WASHINGTON (Reuters) - Striking a chord with uneasy U.S. property investors, T-shirtHumor.com's latest design -- "Mr. Housing Bubble" -- has become its best seller in less than a week.
The parody of the decades-old Mr. Bubble bath foam package offers a "Free Balloon Mortgage Inside." But the smiling pink house-shaped bubble also warns: "If I pop, you're screwed."
A disclaimer at the bottom reads, "Not affiliated with Mr. Internet Bubble."
Anthony Phipps, T-shirtHumor.com communications director, said the Austin, Texas-based t-shirt design and marketing firm has sold hundreds of the $20 cotton shirts since they went on sale last week.
He said the design had the right mix of market timing and dark humor.
"I think it's pretty clear that there are a lot of people in fear over the potential of a housing bust," Phipps said. "A lot of individuals have made some interesting moves financially with interest-only mortgages and the idea of suddenly having all that equity disappear is something that scares home buyers and policy-makers alike."
But the Realty Times newsletter chafed at the notion that real estate prices have reached unsustainable levels, declaring in a headline, "Mr. Housing Bubble T-shirts Indicate Market Confusion."
Arguing that Americans are widely benefiting from adjustable-rate mortgages that make monthly payments more affordable, columnist Blanche Evans said some pundits in the financial press were simply trying to scare real estate investors into shifting their money back into stocks.
Even Federal Reserve Chairman Alan Greenspan, with his recent ominous talk about froth in some U.S. housing markets, has not been able to slow an eight-year housing boom that has absorbed one-third of the nation's investment wealth, Evans wrote.
"Mr. Housing Bubble may get a lot of washings before it wears out," she said.
Phipps' response: "If this thing does pop, a lot of people are going to need an affordable shirt to wear."
I want one!
If enough investors start putting their investment on the market to sell, it could reach critcal mass and actually start the burst. "Enough" depends heavily on what the percent of bubbling homes are owned by investors.
I can see why the disappearing equity would scare people. It would dry up their HELOC with which they planned to pay for the gas to fuel their SUVs ;-)
Arguing that Americans are widely benefiting from adjustable-rate mortgages that make monthly payments more affordable.....
In the current market the adjustable rate, no down, interest only mortgages are akin to the old game of floating checks. All it takes is one trip-up and the game is over ;-)
QUICK! Someone give me a pin!
Only an greedy idiot would fall for an interest-only loan. It is the grossest scam finance companies have come up with yet.
It's like going to a realtor and saying f*** me please.
ping
The housing market is driven by 3 factors:
interest rates. In 2001 Greenspan did one too many rate increases. If he does another rate increase in 2005, it will again be one too many. He needs to learn from history.
No Tax. A person who uses his profit from the sale of one house to buy a more expensive house pays no tax on the capital gain. There is trickle up activity in the market with the buyers at the bottom raising all boats.
Demand. The influx of immigrants is creating a demand for housing. (Legal and illelgal) immigrant IT workers buy a house within 1 year of being here. The unskilled, illiterate (legal or illegal) immigrant whose wages are allegedly low due to those greedy capitalists is usually not able to buy a house until he has been here 4 or 5 years. My suburb is overrun with these unskilled God fearing immigrants who work with their hands and get dirty... and have the nicest looking lawns ever.
If we cut immigration, we kill the goose that lays the golden eggs.... and the green grass.
Ohh that's really intelligent.
Let's forget about National Security so we can continue the exurb sprawl.
If we cut immigration, we kill the goose that lays the golden eggs.... and the green grass.
Lay off the marijuana.
Well, I guess that justifies high crime, hospital ER closings, and schools being overburdened, not to mention the influx of lovely 3rd world diseases.
"only a greedy idiot"
Well not if you have the money to pay it off anytime you want.
Hahaha. What's next, Mr. Heart Attack?
I guess I'm one of those greedy idiots.
I get interest only loans with 10% down for foreclosure auctions and then flip the properties for a decent profit. I'm close to the point of quitting my job for a while to take it on full time since I'm making WAY MORE in real estate than I do at my 90k/year job.
Now if you'll excuse me, this idiot is getting ready to hit another auction at the courthouse this afternoon. Have fun at work.
Quote: "only a greedy idiot"
Well not if you have the money to pay it off anytime you want.
LOL That's why they are taking out the Interest only loans-they don't have the money. Maybe 1-2% have the money to pay off anytime they want and take out IO loans because they plan to move in 1-2 years.
Hey, fellow "greedy idiot", I"m doing the same thing!
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