check out some of these stories. the main guy bought 8 houses in 8 months.. all no money down. now 5 of them are being foreclosed. http://iamfacingforeclosure.com
Doesn't anybody take responsibility for their OWN actions anymore? Noooo! We have to shift the blame to "the powers" and make these "poor people" hapless victims. C'mon now. We have the right and freedom to choose and with these rights come responsibilities. No way around it.
So I take it that the Fed in lowering rates to below the rate of inflation and in forcing the massive amount of liquidity into the system was acting responsibly and not to blame? You are blaming the puppets for the puppeteer's crime. Believe what you will.
Yes Fed is responsible for extra liquidity, but no one puts guns to buyers heads to force them to sign the contracts. It is like in late 20s, Mellon, Mitchell and few other bankers did create extra liquidity, but it was peoples greed and stupudity that bid up prices to levels that could not be justified.
The Fed did not create a little extra liquidity, they doubled the friggin money supply, and who knows what they have done with it since they stopped publishing the M3 statistic. You are another one who is so totally focused on the effect that you are blind to the cause. When the two trillion that has been spent on the war so far and the additional trillions that have been created out of thin air and shipped overseas end up surfacing in the US economy you will probably also be parroting the government rhetoric at that time that the crippling level of inflation is a result of other factors such as the Chinese, Arabs, local suppliers, employers etc, and not the Government's inflationary policies.
================== Exactly; some still do ,& dont play blame game. LA,MS have even higher % foreclosures; as an appraiser noted, hurricane related. IBD website showed foreclosure chart up trending; & has been rising past 2 years.
With all due respect to what have been said here the housing bear may not last much past 2007. When the economy officially hit the brakes in few quarters the Fed will launch more money printing plants and current liquidity situation will seem benign compared to what will come. And I doubt there will be any safe haven in foreign currencies either. This will case the flight to hard assets and real estate is one of them. I feel bitterly dismayed that this fiscal policy forcefully discourages any savings. There are simply no low risk investment instruments that at least match real inflation rate (post-tax). In the environment where gov is on the money printing / spending spree it just does not make sense for an individual to save. Fiat money will become worthless at ever-increasing rate.
You are comparing the US citizen to a mindless puppet? Maybe we Americans aren't the sharpest knives in the global drawer (our test scores prove that), but we still have the right to do as we choose whether or not we have the intelligence to do so responsibly. Here we all are, viewing a trader's message board. We all know that money doesn't just spontaneously generate, but enormous quantities of it change hands everyday. Our job as traders is to divert some of that into our own accounts. This money isn't earned, but I will laugh out loud as I take it from you. After I do take it from you, are you a victim here? Are "the powers" that make this system possible to blame? Are we mindless puppets who are not responsible for our losses because "the devil made me do it" or whatever? Of course not. Many people rushed into this bubble housing market to make a fast buck. I sold a project home at the highs and I laughed just like I do when I sell a stock at the high. It's no different. Somebody has to be a "bagholder" and the responsibility rests with that somebody. I took a chance just like the rest. Once the market wrings itself out, I may pick up another foreclosure and that doesn't make ME a bad person.