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

Discussion in 'Sports and News' started by poindexter, Jan 4, 2008.

  1. Pete Incaviglia

    Pete Incaviglia Active Member

    I'm with you. I keep thinking 2009 or 2010.
     
  2. old_tony

    old_tony Well-Known Member

    Well, according to Zeke and Football_Bat you two must hate America.
     
  3. old_tony

    old_tony Well-Known Member

    So housing is immune to market forces? I'd sure like to know how you arrived at that completely clueless conclusion. Then again, it's probably the same way you arrive at all your other completely clueless conclusions.
     
  4. Chi City 81

    Chi City 81 Guest

    You going for an alliteration record tonight, tony?
     
  5. old_tony

    old_tony Well-Known Member

    It wipes out nothing unless you're trying to sell. And even then, if it goes down 30% in a year but you've been there for 10 years you're still way ahead.
     
  6. old_tony

    old_tony Well-Known Member

    Not necessarily now. No, never.
     
  7. BTExpress

    BTExpress Well-Known Member

    There's some truth in that.

    Actually, the spectrum of people falling prices truly hurts is quite small.

    --- All buyers benefit.
    --- Longtime owners are still well off (see my example, $130,000 rises to $380,000 then drops to $340,000). I cannot in good conscience complain about falling house prices because I "lost" $40,000.
    --- Short time owners haven't really lost anything tangible . . . as long as they are staying in their home.
    --- Short-time owners who absolutely need to sell are hurt.
    --- And of course, flippers are hurt, but I have zero sympathy for them anyway.
     
  8. digger

    digger New Member

    I agree with what you say about it just being on paper, but ...

    You do understand that it DOES effect your current finances if you have to sell it right now, right? Like if you've taken a new job and have to move?

    Or if you're one of the people who took out a bad loan and now can't afford your payment and now you have to sell before they foreclose?

    (edit - obviously I posted this before seeing your previous post - but the point is, there are people who are hurt by this)
     
  9. wickedwritah

    wickedwritah Guest

    The people who signed up for interest-only loans to maintain a certain lifestyle, when they could have afforded a higher payment, are morons.
     
  10. Jones

    Jones Active Member

    I will never understand the mentality of people who buy things they want but don't need and can't afford.

    I say this without bragging, but I would guess I make more than 90 percent of the population. And I drive a 2006 Toyota Corolla. Why? My wife and I looked at fancier cars, but we just couldn't rationalize spending $45,000 on a car when we could get a Corolla for $20,000. Plus, it's better on gas than just about anything else, and the warranty's good and it's cheap to repair. It just made the most sense.

    Or, we could have splashed out for two Range Rovers and put a bullet in our heads.

    I have genuine sympathy for people who are poor, especially children of the poor, owing to circumstances beyond their control. But when a secretary decides she needs five new SUVs in three years, all that sympathy goes out the window. And don't try to blame anyone but yourself. You had to know in your heart that you couldn't afford that kind of car.
     
  11. Michael_ Gee

    Michael_ Gee Well-Known Member

    Cliche: Your home is the biggest investment you'll ever make. As cliches go, it's valid.
    Now, the value of the biggest investment of your life is declining. Bad. Or, much, much worse, you live in a place (and there are many such places) where houses aren't selling at any price because banks aren't lending to people except those rich enough to buy something better than your house.
    Your house has become an illiquid asset, in other words, since you can't sell it, it's worth nothing.
    That's going to make you spend less money. You won't go to the movies so much, and so on. You might even cancel your newspaper subscription.
    THAT's the problem falling home prices create. Faced with a decling asset, people retrench. And the economy goes downward.
     
  12. Mr. Homer

    Mr. Homer Member

    I got a few friends who are in that boat. While my wife and I bought a cheeper house, we have a life outside of those four walls, I can't say the same for them.
     
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