How's That Recovery Comin?

[dalakhani]

Originally Posted by Antitrust32

I'm probably less locked into any certain political ideology than anyone who posts in this whole section.

But I have pretty easily come to the conclusion that Obama is just 4 more years of GW Bush.

and besides, the number one reason the economy collapsed is because the American people lived way outside their means. But nobody wants to take any personal responsibility, so it was Bushes fault.

Its not the person who bought a 400k house and could only afford a 150k house fault, its the bank's fault for providing the loan

Zero personal responsibility in this overly spoiled country that I love.

There is some truth to what you say. But...

How about the family that had no choice to buy a 400k house because the market inflated to a point where it was next to impossible to find a decent place for what they could afford? I am not saying that this was the case all of the time but there is certainly a large portion of the problem loans out there where this was indeed the case.

I think the bank does have a level of responsibility as does the borrower. The types of loans that were being pedaled were just irresponsible on so many levels especially the alt a and subprime that were pushed by the investment banks.

Mortgage rates are close to the lows of last year again and arm products are lower in many cases.

If investors want yield, they are going to have to lend money. Its as simple as that. That is why we are seeing Mbs and Cmbs offerings that we didn't see even last fall...and there is more to come.

Don't fight the fed Randall.

[Antitrust32]

Originally Posted by dalakhani

There is some truth to what you say. But...

How about the family that had no choice to buy a 400k house because the market inflated to a point where it was next to impossible to find a decent place for what they could afford? I am not saying that this was the case all of the time but there is certainly a large portion of the problem loans out there where this was indeed the case.

I think the bank does have a level of responsibility as does the borrower. The types of loans that were being pedaled were just irresponsible on so many levels especially the alt a and subprime that were pushed by the investment banks.

Mortgage rates are close to the lows of last year again and arm products are lower in many cases.

If investors want yield, they are going to have to lend money. Its as simple as that. That is why we are seeing Mbs and Cmbs offerings that we didn't see even last fall...and there is more to come.

Don't fight the fed Randall.

in my opinion, if a person is going to buy a house they should be educated enough on what they can spend. Just because lenders are like used car salesmen, they still dont force you to sign on the line.

The family that spent 400k had options. Shoot, renting is a better option than buying a house that is 200k more than you can pay for and you will get forclosed on.

[dalakhani]

Originally Posted by Antitrust32

in my opinion, if a person is going to buy a house they should be educated enough on what they can spend. Just because lenders are like used car salesmen, they still dont force you to sign on the line.

The family that spent 400k had options. Shoot, renting is a better option than buying a house that is 200k more than you can pay for and you will get forclosed on.

The system created runaway housing prices thus making many families have to "overspend" to buy adequate housing in many areas. Do you think rents were immune to this run up? Rents were often worse and when you factor in write off and teaser rates, it was a no brainer to buy for many of these people.

I agree with the personal responsibility aspect. I agree that no one "forced" these people to sign and I think the media wants to play up the victim aspect as if all of the people that signed on were pollyanna. At the same time, lets not go the other way and completely disregard the many that were indeed victims of a system corrupt from tip to tail (had to throw in a little racing).

[Antitrust32]

a little off topic..


Do you think that housing prices are too low right now, or that they are where they should have always been?

[dalakhani]

Originally Posted by Antitrust32

a little off topic..


Do you think that housing prices are too low right now, or that they are where they should have always been?

Too high still. Everything is going up but wages. Until we return to an arc where home prices are 3-4 times wages, home prices are too high.

keep in mind, this is a national average and real estate is local. In many areas, especially areas like yours where there is so much vacation and rental property, I think prices are extremely LOW. I think many people are going to look back ten years from now and wished they had bought RIGHT NOW in some of these areas.

[Antitrust32]

Originally Posted by dalakhani

Too high still. Everything is going up but wages. Until we return to an arc where home prices are 3-4 times wages, home prices are too high.

keep in mind, this is a national average and real estate is local. In many areas, especially areas like yours where there is so much vacation and rental property, I think prices are extremely LOW. I think many people are going to look back ten years from now and wished they had bought RIGHT NOW in some of these areas.

i agree with all of this, and yes, Florida is the place to buy right now. you can get a real nice 3 bedroom/ 2 bath place with a half acre of land for like 85 grand around here.

Originally Posted by dalakhani

Too high still. Everything is going up but wages. Until we return to an arc where home prices are 3-4 times wages, home prices are too high.

keep in mind, this is a national average and real estate is local. In many areas, especially areas like yours where there is so much vacation and rental property, I think prices are extremely LOW. I think many people are going to look back ten years from now and wished they had bought RIGHT NOW in some of these areas.

All you have to do is drive 50 miles of the gulf coast to realize this country is going into a great depression.

[randallscott35]

Originally Posted by Coach Pants

All you have to do is drive 50 miles of the gulf coast to realize this country is going into a great depression.

I can hunt, handicap, and fish. Nothing to be depressed about. Go Barack Go!