Posted on 08/27/2007 4:06:37 AM PDT by Notary Sojac
http://mysite.verizon.net/vodkajim/housingbubble/shiller_graph.gif
The market is just doing what it always does when it overheats, coming back to earth.
....... because you are a FOOL. Aliens and Death Rays are REAL, man....!
Look, it's just not as bleak as you want to believe.
Furthermore, my God is such a loving God who is so bountiful, that if there is a Great Depression, I will become an apple millionaire.
OKIE,
Here is how it may playout in Michigan, as if we do not have enough problems.
Homebuilders have no work, no need for a new Utility pickup truck.
Those assembly lines effected bigtime, more layoffs.
Even worse, these are the "margin" vehicles that are paying for retire health care benefits.
This has the potential of making Michigans situation even worse, I have discussed this senario with friends in business and they agree.
BTW: Seven (your recollection) minus four (the facts) equals three.
You nearly doubled the timeframe of recession. This leads me to believe you are prone to overexaggerationaboveandbeyondtoomuch.
What's your opinion of the Partnership for Prosperity agreement and New Alliance Task Force?
What's your opinion of the FDIC allowing banks to accept Mexican Matricula Consular cards as valid ID to obtain bank accounts, home and auto loans?
No, by crossing the border illegally and by having an illegal-loving President in the White House.
What was the reason why Bush signed the Partnership for Prosperity agreement in 2001 or formed the New Alliance Task Force in 2003?
Sure, he tried to increase home ownership --among Mexican illegal aliens. That's why the banks put representatives in Mexican consulates and programs into place to educate the illegals about how to take advantage of the looser credit standards.
I have no sympathy for these people who speculated on houses, absolutely sure they could only increase in value (tulips, anyone?) - or those who bought homes they can't afford by using ARMs and other creative financing. How about those who used their home equity as an ATM and are now upside down and couldn't sell if they had to. These people abused the credit markets and now they're paying the price. And you're blaming the federal government? Who bought the houses? Who applied for a loan whose interest they KNEW could go nowhere but up?
Who cares? Not me - unless maybe I can capitalize on it.
In the meantime, I'm living in a decent house with a 6.5% fixed rate mortgage, have two paid-for older cars, zero credit card debt and scads of cash saved. Why? Because I wasn't greedy - trying to buy things I can't afford (like a house on option ARM). I don't think this makes me a 'winner' but I'm quite certain I'm not a 'loser'.
Everyone except those who see houses for what they are: a place to live.
A home is a liability not an investment. Its value may go up, may go down. But in the end it's a place to live and as long as you can make the payments, short-term swings in housing prices don't matter.
Everybody should care if they don't want to see our economy go in the toilet.
No it's not.
Investors in mortgage-backed securities are skittish because so many of the loans are going south. Despite almost record-low Fed funds rates, the credit markets won't loan the mortgage lenders the money they need to keep financing these types of loans. The money is there - nobody will take the risk.
The housing market isn't our economy. This is a bubble bursting just like the stock market bubble of the late 90s burst. It's not the end of the world to anyone whose savings are diversified.
Yes and no. If you own a second house for investment purposes it is an investment. But for the vast majority of us a house is our home. I look at it as a valuable family assest, not an investment.
That's true, but in that case most investors use it as a rental property. The drying up of easy mortgages should be good for the rental market.
Yep.
You haven't been watching the markets lately. News on US housing has been driving the world markets for the last month or so. It impacts retail, financial companies, techology stocks. Shoot, even defense stocks have been driven lower solely on negative news in our housing market. Stocks in China, Japan, and Europe move on our housing market.
LOL. I haven't been watching the markets? How would you know?
This is a cycle like any other. Stocks go up, stocks go down. Same with houses. The long term trend is up and this is a buying opportunity for those who kept some powder dry.
It is a great buying opportunity, but only if the fed cut next month. Otherwise we will see a sub 12,000 DOW.
That's the herd panicking. A downturn in defense stocks in reaction to a collapsing housing market is irrational panic on the part of the herd. There is little real connection between the two markets. You make money by observing the herd and generally doing the opposite. When the herd realizes its mistake, the defense stocks will recover and money will be made by the anti-herd.
Not if you got cash, at least enough for a good down.
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