A bit small, but this just leaves me shaking my head...
Posted on 12/07/2008 9:17:55 AM PST by Bean Counter
How is it Constitutional for the Federal Government to "bail out" one set of homeowners like are described in this story at the expense of we people who are responsible homeowners??
I have a very difficult time feeling sorry for people like the Andersons, or anyone else who agreed to a mortgage on these terms, and is now simply walking away.
God save us from greedy people like the Andersons, as well as a Democratic Congress who wants to help prop them up....
They made what turned out to be a bad investment and lost money. Sucks to be them, but why do I as a taxpayer have to bail them out?
These people were fools....there is an old saw about fools and their money.
What made them think they could buy a home and then simply flip it for a neat 25% profit (~150K) just weeks later?
Did they think everyone else was just dumb?
Am I understanding this correctly, they bought a NEW house at the height of the housing boom expecting to sell it at a handsome profit? That just doesn’t make sense.
I bought a piece of property in the Northwest in 2002 and built a house on it in 2005. A vacation/retirement house.
I got a 4.75% fixed loan for the property and paid for the construction mostly with savings and out-of-pocket. It’s small, but nice. Not extravagant and sprawling. It was something I could AFFORD.
I’m not patting myself on the back, here, for being smarter than the average bear. Honestly I made plenty of stupid mistakes, but speculating and gambling that I’d be able to make a killing in the housing market was not one of them.
This is EXACTLY why I plan to be really, really active during the next set of primaries. I am going to work as hard as I can to throw every SOB who voted for any of these bailouts, including every RINO I can find. The GOP better start paying attention because, from what I hear from people I know, all of us are really pissed off.
This is a small parable to explain why this country will fall. Not because of muslim terrorists, or other external threats, but because we read this article and feel sorry for these people.
Not just any new home. A 5000 sf home. That’s cheeky.
BTW, has congress passed any new laws making these 0% down, interest only mortgages at the borrowers sole risk? Didn’t hear about it if they did.
Must have missed the memo announcing the height of the housing market was upon us. [/s]
There will ALWAYS be people buying at the peak...as well as people selling at the bottom of the market. Stuff happens.
Yup. People have pure greed and they ALWAYS fail to recall two simple concepts.
1. Supply & Demand - Increase supply and prices fall unless demand can keep growing as fast or faster than the supply(”ain’t gonna happen”).
2, Reversion to the Mean - When prices of a stock or home gets too high and out of wack with historical growth rates the price will revert to a historical average or growth rate. You can usually draw a growth line or average. the price spikes above that average - it will eventually revert to that avg.
You can probably add a third concept and that is the madness of crowds. Like the Dutch tulip bulb craze in the 1600s or tech stocks in 1998-1999 - when a crowd is doing something enmasse - you better do the opposite.
Another concept is fibonacci retracement which is like reversion to the mean.
there is one home tagged 'make me move' for $600k
article promoting doom & gloom where there is none?
It's plain old insane that Americans are subject to prices created by speculation for the basics of life such as a home and gasoline.
Of course, the type of house they were dealing in was hardily a typical home. But, still the concept has a trickle down impact that affected everyone. I can't say I have sympathy for folks like this. I'll save that for the folks pushed into higher mortgages for a basic home because of this speculative insanity.
Let's hope no one corners the market on water.
I bought some stock when it was high...hoping it would go higher but it went lower and I lost money. Can somebody bail me out? It’s really not fair !
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