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Originally Posted by justabubba";p="
your schizoid argument reminds me of the media. what really pisses me off is that i am forced to agree with jake - even while he is wearing that God-awful pink tutu.
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Stop it! the pink tutu is cute.
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but your argument is that of one who does her quarterbacking on monday morning, knowing what the outcome has been. if you are so smart, at least as smart as you think bernake/greenspan should have been, then why did you not sell your home at the top of the market and then hoard your cash so that you can buy an equivalent property cheaply when the market soon bottoms?
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Hmm. I don't think I am particularly smart which is why I am baffled by the fact that this thing was allowed to happen by people who DO think they are smart. I read a variety of columns /blogs written by economy watchers and they all seemed to be more concerned about the subprime risk than the Feds. People on this Forum have asked, "What could he do?" [Greenspan] Evidently, he had the power to do something. He was warned in 2004. He did nothing. Bernanke is finally beginning to institute regulations to address predatory lending.
I have bought and sold a number of homes so I have been looking at the rapidly rising home prices as astonishing and unsustainable, for some time. When my mother began to invest in R.E., the rule of thumb was that the home should earn 10% of the sale price in rents every year. (If one needed to rent it) Its been many years since that rule of thumb has been useful or relevant- everyone was depending on Vegas principles- good times will never end; just keep rolling the dice, prices will go up. I am not smart, just conservative.
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the last thing we need is government intervention in the marketplace, beyond its protecting us from fraud and abuses of monopolies. just watch. if the market is left alone it will correct itself. yes, those who invested unwisely will suffer. you complain that this affects the present market value of your home. my guess is you were not complaining when the appreciation of value was experienced before the bubble popped. here is a definition of Fair Market Value - i encourage you to memorize it: the price at which a willing buyer would purchase a property and a willing seller would sell the same property, when neither party is under any compulsion to buy or sell, and each party has full knowledge of all pertinent facts relating to the sale. don't expect uncle sugar to protect your property value; invest wisely ... take personal responsibility to do that for that for yourself. i promise you that the outcome will far exceed what the government would do instead
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Again, you don't seem to "get" what I am saying. I bought my current house for 68 grand 13 years ago. I have no idea what its worth, today. I am angry because the greed of a few people is going to add to that perfect storm of doom- high oil prices, aging baby boomers, huge deficit, now subprime debacle. It won't be pretty. If you can think of the best way to take advantage of this, let me know.