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'The US housing bubble will disappear'
in2perspective ^ | September 11, 2006 | Laurie Osborne

Posted on 10/14/2006 9:48:44 AM PDT by GodGunsGuts

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To: palmer
More believeable. I know some lenders are aggressively pushing interest only arms with little or nothing down even for full priced middle tier houses, and some high priced ones in CA specifically. But they do so by tacking on 1% on the rate and requiring mortgage insurance, or by packing it as two loans - first mortgage at normal rates and second for 10-20% at above market rates. Then they securitize the first mortgage part.

And there is certainly a land office business in refinancing, now from ARMs to fixed where before it was the reverse - and including reverse mortgages not for first time buyers, but for refinancers cashing out some of the big equity boost the last 5 years have given them. For retirees especially, but also for speculators in CA who want to take cash flow from a winner 2-4 years ago and use it to carry another bet last year etc.

Some of those speculators will get killed, and some of those reverse financiers would have been better off selling and moving to a more affordable region (e.g. the CA to AZ trade). But none involve most of the country being paid on the equity side to support the interest side, out of non-existent equity, out of mere hope of price appreciation. Which is what the bears are alleging, and it is ridiculous.

361 posted on 10/16/2006 8:28:51 AM PDT by JasonC
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To: winodog

I stand corrected. I've got nothing but time on my hands right now so I'm an easy mark. As far as keeping up the good work...right back at ya!


362 posted on 10/16/2006 8:32:40 AM PDT by GodGunsGuts
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To: djf

I bet they'd make an exception if someone decided to pay with gold :o)


363 posted on 10/16/2006 8:36:00 AM PDT by GodGunsGuts
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To: Toddsterpatriot

Never said that Toddler. I said I'm against fiat money. There's a difference.


364 posted on 10/16/2006 8:36:51 AM PDT by GodGunsGuts
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To: Toddsterpatriot

365 posted on 10/16/2006 8:39:35 AM PDT by GodGunsGuts
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To: GodGunsGuts

I've read good essays on what money is exactly. Few understand it. Based on its rarity. Its divisibility. Its inability to be counterfeited. Its fungibility. Its ease of identification.

And no one has even tried to answer my question that if you have 90 people waving dollars at you, but three waving roast beast, is it all that brainy to take the dollars?

Yet more dissasociation with reality.


366 posted on 10/16/2006 8:44:01 AM PDT by djf (I'm not ISLAMOPHOBIC, just BOMBOPHOBIC!! Whether that's the same is up to Islam!!!)
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To: Fan of Fiat; djf
The dollar, stable? LOL!


367 posted on 10/16/2006 8:48:52 AM PDT by GodGunsGuts
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To: djf
You have to remember, the people you are arguing with are hardened fiat fanatics. Anyone with half a brain would take the silver dollar in a time of crisis.
368 posted on 10/16/2006 8:53:24 AM PDT by GodGunsGuts
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To: GodGunsGuts

Why did you choose that specific 3 year period?


369 posted on 10/16/2006 9:05:31 AM PDT by Fan of Fiat
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Comment #370 Removed by Moderator

To: GodGunsGuts
Economy goes up and down, that's supply and demand. So what? But with change people also see opportunity. So what if it's a gloomy overall outlook and if it is true? There is always opportunity if you know how to find it. The fact that people reinvent and change their game is what makes our economic dynamo so resilient. It will rebound from the worst possible scenario because of great business people.
371 posted on 10/16/2006 9:21:13 AM PDT by SQUID
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To: GodGunsGuts

Would you care to spread that graph out some more? Maybe from 1996 to 2006?


372 posted on 10/16/2006 9:22:54 AM PDT by Petronski (Living His life abundantly.)
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To: Fan of Fiat
Or for that matter why did he choose to align the two Y-axes at those levels?

The answer: TO SELL MORE GOLD, of course.

373 posted on 10/16/2006 9:24:34 AM PDT by Petronski (Living His life abundantly.)
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To: SQUID

I'm with you. I've been taking advantage of it for the last five years. Unfortunately, there are some on this thread that are doing their level best to encourage others to put their collective heads under a rock.


374 posted on 10/16/2006 9:24:40 AM PDT by GodGunsGuts
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To: Petronski

Be my guest. It will just prove how unstable the dollar is.


375 posted on 10/16/2006 9:25:51 AM PDT by GodGunsGuts
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To: GodGunsGuts

You again demonstrate your love for cherry-picking data.


376 posted on 10/16/2006 9:27:46 AM PDT by Petronski (Living His life abundantly.)
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To: Petronski

I said, be my guest. Go ahead post it. Let's see how stable the dollar has been since 1996. LOL!


377 posted on 10/16/2006 9:30:49 AM PDT by GodGunsGuts
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To: Petronski

Didn't even mention the fact that they compare the price of Gold in Dollars to a Dollars index. Anybody who has taken statistics 101 can see the problem with that.


378 posted on 10/16/2006 9:31:52 AM PDT by Fan of Fiat
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To: Fan of Fiat; Toddsterpatriot; nopardons
Anybody who has taken statistics 101 can see the problem with that.

But the ad . . . err, chart . . . is aimed at the rubes who have NOT studied statistics.

379 posted on 10/16/2006 9:33:14 AM PDT by Petronski (Living His life abundantly.)
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To: Petronski; GodGunsGuts
?

The essence of stability.

380 posted on 10/16/2006 9:39:28 AM PDT by Fan of Fiat
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