Has the bubble burst?

News and Review ^ | Sep 21 06 | Sasha Abramsky

[HapaxLegamenon]

I wonder is Sacramento's high taxes has anything to do with its housing decline?

[Petronski]

I will have the last laugh.

Unless you take your thorazine.

[GodGunsGuts]

As opposed to the immutable bearishness of a Petronski, LOL.

The bulls have been winning for the last five years, and will continue to win for years to come. Every time you try to talk gold down, it ups and makes a fool out of you. One would think that you and your crowd would tire of being embarrassed over and over. It is rapidly becoming clear that your capacity for ignorance in the face of overwhelming contrary evidence knows no bounds. Your vehemence and hatred of gold is so extreme that you have in effect made it your god (as evidenced by the fact that you post your bull-god idol at every possible opportunity). You secretly worship at the alter of gold, whereas those of us who actually profit from it treat it for what it actually is: a rapidly appreciating form of (honest) money.

[churchillbuff]

I wonder is Sacramento's high taxes has anything to do with its housing decline?"""

Excellent question. The California property tax rate is, I've read, about1.25 percent of the purchase price. So if they're purchasing houses that average 500k or above, they have a stiff monthly property tax, on top of the mortgage. Add in the high sales, gas and income taxes, and you have to wonder why middle class people would want to stay in California. The government is socialist, Arnold at best has just kept it from going even more socialist, but he hasn't been able to push back any of the bad policies already in place (even if he were committed to trying). And after Arnold, well by then the newcomers from Mexico and South America will be voting in numbers big enough to give California a Mexico-like government of REAL socialism and corruption.

[gas0linealley]

Upstate NY

[churchillbuff]

Even a dump in South Central is a quarter million...""

Try North or South Dakota, Minnesota. I think you can find some "old school" home prices - well below 250k. Suburbs of Detroit are cheap, too, I've read.

[Petronski]

The gold bull has made fools out of your crowd for the last five years, and it will continue to make fools out of you in the years to come.

I have made fools out of your crowd for the last five years, and I will continue to make fools out of you in the years to come, for I am the mighty AU, the goldbugs' shiny metal god!

[hopespringseternal]

Of course, it's the fault of "unscrupulous financing," not "punchdrunk borrowers" or "careless fools."

The fault is on both sides. These people were careless to be sure, but they were also lied to.

This sort of thing will wind up getting laws passed that will limit the financing options for the competent, too.

[Petronski]

Every time you try to talk gold down, it ups and makes a fool out of you.

I'm not talking gold down, I'm laughing at it. And you.

[Petronski]

The fault is on both sides.

Of course it is, in the macro sense. But in the particular loan in this story, the borrowers were fools who overreached themselves to buy more house than they could afford. If they didn't understand the terms of their loan, it's because they didn't want to, lest their conscience intervene and talk them out of the house they knew they deserved--whether they could afford it or not.

[GodGunsGuts]

When it comes to fanatical bull-god worshipers like yourself, thorazine is one of the few drugs available that will keep you from succumbing to religious extremism. Indeed, you're probably convulsing, shaking and genuflecting in front of your gold-bull god right now. Perhaps you should shuffle on over and take another does of Thorazine before it's too late!

[Petronski]

...but they were also lied to.

I don't see where that happened.

[bert]

The Philbrooks are reaching far beyond their grasp. Life for the greedy is always going to have sever problems.

[Petronski]

When it comes to fanatical bull-god worshipers like yourself...

You're ridiculous. It's your shiny metal god, not mine.

You're just unnerved by the presence of Au.

[Petronski]

P.S. Nice spelling. You're obviously very well educated. LOL

[Petronski]

Still hoping for another economic depression so you can personally profit from the despair and ruin of others??

[gas0linealley]

"We're talking about a middle class home in a decent neighborhood - not a dump in South Central or a stick in the middle of a nowhere. And yeah, a home costs more in California that most people will make in a lifetime."

Interesting that you wrote: "home", instead of "house".

In fact, I wasn't referring to a "dump" when I wrote that there had been several houses priced at less than 20K in this area. I looked at one of them and considered buying it for my own use, but something else proved more attractive.

It seems to me that many unattractive houses in less than ideal locations might be more readily turned into "homes", where parents have time for their children, or relaxation, than the upscale houses that are so sought after today but the keeping of which demand incessant labor.

[dalereed]

Absolutely!

[GodGunsGuts]

Is that part of your bull-god therapy at the asylum? "Laugh at the bull-god, Petronski. Laugh at him, mock him! Look at him, Petronski. He's motionless. There's nothing to fear. Uh oh. Nurse, Petronski is beginning to tremble again! Quick, hook up those electrodes! Is the power on?!?!? Good, not a moment too soon! See how he's frothing at the mouth? This is going to require more power than ever. I know it's dangerous, but we are about to lose him to the bull-god forever. I take full responsibility, nurse. Bury the needle!!!"