All this manufactured wealth, inflated value and bullshit equity only furthers the problem.
I'm looking forward to a "pure" market (as much as is possible), where home prices bear some semblance of a relationship to what folks can truly afford. Frankly, in a non-manipulated housing market, I'm higher up on the food chain.
Now that folks will actually have to prove their income, and make payments toward more than just the interest on loans, houses wont cost 500K on average anymore (for a shack built in 1945). And the brilliant young lawyer with a nice amount of debt (but with a likely longstanding means to pay a mortgage) is suddenly a more attractive buyer than the individual who works at Pac Bell allegedly earning 11K per month. (Okay. sure.) To this I say, Amen!
...so that these dumb asses who didnt know a variable rate mortgage from a fuckin whole in the haead can save their homes at the expense of folks like me with no house (for reasons discussed above) and no kid.
It's actually a double-whammy.
ReplyDeleteHousing bubble busting...as well as currency bubble deflating.
So, the drop in price is even worse than it sounds - with the declined dollar value in addition.
Yup.
ReplyDeleteGood point Byrd.
From a mil to $700K when $700K is really worth about $310K.
^ Yup. Lol.
ReplyDeleteOUCH. :(
Really, it would have to go up to about $1.3 mill...just to BREAK EVEN. Much less tank $300K...
THANK YOU FRB!!!!!
Buy low, sell high.
ReplyDeleteplay the currency game in between.
Let it all cave in.
ReplyDeleteAll this manufactured wealth, inflated value and bullshit equity only furthers the problem.
I'm looking forward to a "pure" market (as much as is possible), where home prices bear some semblance of a relationship to what folks can truly afford. Frankly, in a non-manipulated housing market, I'm higher up on the food chain.
Now that folks will actually have to prove their income, and make payments toward more than just the interest on loans, houses wont cost 500K on average anymore (for a shack built in 1945). And the brilliant young lawyer with a nice amount of debt (but with a likely longstanding means to pay a mortgage) is suddenly a more attractive buyer than the individual who works at Pac Bell allegedly earning 11K per month. (Okay. sure.) To this I say, Amen!
Oh, and regarding any bailout...HELL TO THE NO!
...so that these dumb asses who didnt know a variable rate mortgage from a fuckin whole in the haead can save their homes at the expense of folks like me with no house (for reasons discussed above) and no kid.
ReplyDeleteFUCK THAT! I'LL MARCH ON THAT SHIT.