How poor white trash like this brought down the house

Discussion in 'Economics' started by stock777, Dec 15, 2009.

  1. Bob111

    Bob111

    how about roofers,driving escalade with tar tank attached to it? 2006 :p
     
    #11     Dec 15, 2009
  2. "How poor white trash like this brought down the house"

    I thought you were talking about these guys:
    [​IMG]
     
    #12     Dec 16, 2009
  3. At the lows yes it was. But commercial real estate prices got decimated, there's no getting around that fact - a 35% fall peak to trough since 2007, according to Moody's. Given that most real estate investors use leverage, the loss in terms of equity for a conservatively financed player using 50% debt, would have been a staggering 70%. Sure, some markets did better but some did worse - it was still a country-wide carnage, the worst for decades.

    Also, bear in mind that we do not yet know if we have seen the lows. In the medium-term obviously we have. But commercial real estate in Japan peaked in 1990 and didn't reach a low until 2003-04, and in some areas 2008/09 saw new lows - 19 years after the top. Who is to say that real estate prices aren't at the start of a decade-long slump? Stocks peaked in 2000 and 10 years they will almost certainly be significantly lower, even if we have a seasonal new year rally. Given that real estate had a similar once in a generation bubble, then surely one has to expect that in 2017 average prices will still be way off their 2007 highs.

    Patriotism is a dumb investment strategy - ask any loyal citizen of Japan over the last 20 years.
     
    #13     Dec 22, 2009
  4. aegis

    aegis

    #14     Dec 22, 2009
  5. The cow dung has 4 things going for it.
    You can burn it to keep warm, use it to grow food or pretty plants, it's honest in what it is, and it smells better than the insiders.
     
    #15     Dec 22, 2009
  6. S2007S

    S2007S


    Amazes me to see that they still demand 4-5% commissions for showing a house, most of open houses I have been to, the brokers were totally worthless. They remind me of those pathetic car salesmen. I think the effort a broker puts in is worth no more than maybe 3/16th to a 1/4 of the sale of the house and no more than that. If they work a little harder than the average agent maybe 1/2%.
     
    #16     Dec 22, 2009
  7. aegis

    aegis

    On seller's side, I agree. You can pay the MLS fee and list it yourself.

    However, some potential buyers insist on looking at dozens properties over the course of several weeks or months before they make a decision, if they decide to purchase at all. I wouldn't put up with that crap if I wasn't going to make some money on my other listings.
     
    #17     Dec 22, 2009