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Originally Posted by LoSconosciuto";p="
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Originally Posted by Sadistic-Savior";p="
More bad news brought to you courtesy of...
Remember: The glass is always half empty. (at least until a liberal is elected...)
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Alan Greenspan was a Republican - though the Fed (and Greenspan) has done a good job of remaining fairly apolitical. While fiscal policy issues are playing into the housing boom/bust concern, the Fed will be the first to react, with monetary policy changes. In fact, the Fed is already reacting to this and other monetary concerns. Not everything comes down to Repub vs. Dem, or liberal vs. conservative. I know the board would empty out without those playground antics, but still...
People are doing some crazy and idiotic things right now. Some are doing it to just get in a place to live (that they can call their own). Others are playing real estate investor (speculator) on the side... making one or two flip deals that nets them $80K or 90K in a few months and believing that next year they'll be challenging Mort Zuckerman for his NY empire. Those (moronic) people are helping to inflate the real estate market, just as the Mike Milken wannabes, who chased phantom companies with no earnings, helped to inflate the NASDAQ in the mid-to-late 90's.
What some people are concerned about are the interest only, low/no doc and non-conforming mortgages that are beginning to show up all too often. These high risk borrowers are the ones most likely to walk away and cause problems in the banking sector. The speculators and flippers are another concern. In their case, I think it'll be more a case of easy come, easily gone. The smart ones will leave the tables before the dealers start taking their money back.
But I think this will be more of a regional thing than a broad based problem. It's the medicine that the Fed might dole out that concerns me - that could be broad based. |
I wonder if all the dot-com money that people made on their nasdaq shares have been pumped into the housing market. (yes people, some people sold their nasdaq stock before the big fall, netting them tens of millions) .
Unlike the tech boom, which actually did uncover new technology and create spin off companies & jobs , property does NOTHING else to the economy, once the house is built thats it. If people are re-investing in property , it wont be long before the whole economy is trading properties to each other (thats ridiculous, though if banks are eager to lend, this situation could last until the banks say no) .
There's quite a few TV shows about the property ladder and property game. Joe Blow sees his house double in value, thinks I might buy a house in Spain or Florida. However Joe needs to sell onto someone else, if no one else is buying...
the proprty market is a pain in the whole for someone like me who is startingout, with no equity. I'm thinking of moving to a county with cheap property to avoid having to pay the vastly inflated house prices. the Irish economy is being propped up by debt spending.