Bush's advisor: Housing slump to only last six more months

Useless drivel spoken by absolute mental midgets (or liars, take your pick).

http://www.cnbc.com/id/22504387

Folks, get ready, because we haven't even seen the beginning of the problems in housing brought on by Moron Nation (the borrowers and lenders both).

 

Rising cost of fuel, slumping dollar, loss of manufacturing jobs. Sure, I can see why people will be able to afford their homes if not now but in six months.

 

It's not even the start of it.

The Ponzi scheme artists known as lenders have been selling something called Pay Option ARMs to borrowers with good credit, the past few years (forget subprime lending - Option ARMs are completely different).

Huge loans, where borrowers had to only pay a minimum payment.... and these loans are negatively amortizing. Borrowers are in for a huge reset in their payments in the next couple of years, if not before.

And lets remember, all the cash taken out wasn't to fund retirements, or pay down loans. It was to buy Ford Expeditions and vacations.

http://loanworkout.org/2008/01/01/its-not-all-subprime-pay-option-arms-californias-billion-pound-gorilla/

http://blogs.marketwatch.com/greenberg/2007/12/straight-talk-on-the-mortgage-mess-from-an-insider/

If you are planning on buying a house, wait a couple years.

If you want to somehow find a way to make money in what is going to be a terrible stock market, look at DXD, SRS, SKF.

 

Hey Poin. The wife and I were reasoning 2009 or 2010 as the time to buy a home.

You seem to know what's going on (more than me, anyway).

Do those dates sound about right?

I'm thinking 2010, but I really want/need out of this apartment.

 

So my mom went shopping for a new car this weekend. She's driving a 1996 Cadillac now and went looking for a newer one, like a 2005 or 2006. She walks into the showroom and there's a brand-new DTS sitting there. "How much is this," she asked the salesman. $45,000. "Shit, that's more than I paid for my first house." Salesman replied, "yeah, but we can finance you for EIGHT YEARS on it."

Who the hell finances a luxury car, which are rivaled only by boats and RVs as lousy investments, for eight years? And does the finance industry have no shame at all? Used to be if you couldn't afford it, you didn't buy it. Now we just continue to dangle carrots in front of people that we know are teetering on the brink.

 

I have no f'ing clue. Depending on where you live, it may be soon.

If you live in a housing bubble state (Fla, NV, CA, Az), wait it out. Here's a thumnail.

With your family's income, can you afford to put 20% down on a house, and make payments on a 30 year fixed? If the answer is no, you need to wait until housing prices come down. With all the bullshit ponzi scheme crap that's gone on, there is a LOT of cleanup to come.

 

I said it on another thread a long time back: People no longer care about total price/total investment. They care about "How much are my monthly payments?" And that is killing people like me and my wife who say "I'm not just going to piss money away." and "I'm not going to give you interest for 40 years."

 

Just because there are stupid loans out there doesn't mean anyone has to lose all their brains and sign up. Yeah, there are 50-year mortgages and (as noted previously) car loans for eight years. Use some common sense, people, and know what you can afford.

 

Moron Nation, plain and simple
http://www.latimes.com/business/la-fi-autoloans30dec30,0,4058852,full.story?coll=la-home-center

Here are the poster children, a couple of fat fucks from Bumfuck Oklahoma, who had to buy five new cars (Gas guzzling super SUVs to cart around their fat asses) in three years, and now just figured out they are in trouble.

 

I'm reluctant to say F you to this guy.

AM willing to say, "Bet me!"

 

But that's how these corporations, banks, lenders, et al suck EVERYONE in. They know EXACTLY how much you can afford PER MONTH. And people know they can't afford a $45,000 car. But they CAN afford $400 a month for eight years to pay for that car. What they don't remember or seem to car about it is that all that interest they paid on the $45,000 car could have been better served as money in a retirement plan.

 

The Friedman Unit applied domestically!