Less than 20% fall in home prices will destroy the banking system?

Discussion in 'Economics' started by moo, Mar 28, 2007.

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  1. volente_00

    volente_00

    So blast, how are you paying a mortgage in manhattan on that whopping low 6 figures you make? That is equivalent to making about 30k in Tx. Hell a garbage man makes 90k where you live.


    :confused:
     
    #211     Apr 5, 2007
  2. blast19

    blast19

    I don't have a mortgage...prices here are ridiculous. I make low 6 figures because I have made a lot of paper gains on one long term investment(PIPE) and I take out a certain amount so I only pay a certain amount of taxes. :D At my age, working for myself and having almost $2M in assets ain't bad...keep grasping for straws loser.

    Good for you for no longer talking about things you're ignorant of and finally talking about things you're keyed in on...like making $30k/year in Texas :p
     
    #212     Apr 5, 2007
  3. Yawners. Predictable conclusion, housing is a function of employment.

    I wonder what happened to that big housing crash that was suppose to happen. I wonder where all the hyperinflation , dollar is crashing, crash the bond market fans went.
     
    #213     Apr 5, 2007
  4. RYL warns :)
     
    #214     Apr 5, 2007
  5. blast19

    blast19

    What the hell are you talking about? I haven't been calling for a crash for so long. What you clearly don't grasp is that a barrage of loose lending is what allowed people to buy houses that they shouldn't have qualified for. Why is that so hard to understand? Leveraging yourself to the hilt with ARM loans and credit lines isn't a forever dream.

    Who says a crash has to happen this year OR next? That seems to be your stupid premise.

    Good job discussing nothing.
     
    #215     Apr 5, 2007
  6. And the price is up!


     
    #216     Apr 5, 2007
  7. blast19

    blast19

    After reading the blog right now I think he finally nails it in the end...it's the lenders. It all comes back to the lenders giving money(a shitload) to people they shouldn't have and inflated housing prices due to a glut of money that shouldn't have been lent according to proper lending standards...but alas it was.

    There is more blame as I think others in the RE business had complicit interest in seeing higher house prices.

    Check out this link:

    http://moneycentral.msn.com/content/Banking/Homebuyingguide/P85333.asp

    Look at the quarterly price increases in some areas...NUTS! 10-25% increases in one quarter is insane for such a large item. Prices coming down just 10% can destroy a lot of people's value in their homes and interest in not defaulting. If I got a zero-down loan on a $350k house and it's only worth $315k now and I have no equity in it, why stay? Not to mention that if it's on an ARM loan and resets that person is unlikely to qualify for a better loan, have the money to make the difference on a loan, pay the higher price....who wouldn't default? I would!
     
    #217     Apr 5, 2007
  8. blast19

    blast19

    It's because of this:

    Excluding the impairment, the goodwill write-off and the change in effective tax rate, per-share earnings for the quarter would have been 63 cents to 73 cents, the company said. Analysts polled by Thomson Financial are currently forecasting first-quarter earnings of 42 cents a share on revenue of $641 million. End of Story
     
    #218     Apr 5, 2007
  9. their earnings not gonna bring them down unless they miss by a mile, its the national data that makes'm go down, i'm holding all till low teens
     
    #219     Apr 5, 2007
  10. volente_00

    volente_00

    #220     Apr 5, 2007
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