Gee. That was hard to see. Nope, nobody could have ever have seen this coming.
February 12, 2009
How did we ever get into this mess? I just don't understand.
Oh, wait, my bad. I understand PERFECTLY.
Gee. That was hard to see. Nope, nobody could have ever have seen this coming.
Gee. That was hard to see. Nope, nobody could have ever have seen this coming.
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38 comments:
'Flipping Houses for Dummies' is the funniest. Shouldn't there be an 'is' somewhere in that title?
I'd like to flip the flippers!
The talking heads on TV love to tell us how nobody saw this mess coming. The problem is that these guys consider anyone who disagrees with them to be a "nobody" so oddly enough "nobody" disagrees with them.
We need fewer talking heads and more real journalists.
Bring regulation to cut out Yield Spread Premium forever
Seems like everyone became a real estate investor.
Heh.
Heh heh.
Heh heh heh.
What has caused this Meltdown in the Global Economy?
Answer: Meltdown (MP3 Interview)
I have heard that even during the heyday of flipping, when the market was hot, about 50% of the Flippers lost money or just broke even.
murtha is starting feel the heat. he has hired a criminal defense attorney.
"Flipping Houses For Dummies" is my favorite. How prophetic.
Keith,
Ahhhhhh! Refreshing to see the truth.
This time you nailed it!
The cause of the housing mania was a “Trend”
‘Human herd mentality’
Just like Rubex cube, Cabbage Patch dolls, Disco, Bell bottoms, Global warming, Day traders and Side burns.
Every time you start with your its ------- fault
Or you blame an individual
Or some vast underground conspiracy
You come across like a typical tiny brained European who never takes ownership for their own actions and consequences.
I want to congratulate you for this post
Reminds me of the Cash4Gold.com commercial during the SuperBowl...
So, the thing i don't understand is this. Given the fact that it's been increasingly harder and harder to keep up, ie. REAL wages NOT keeping up with inflation and taxes, how were people supposed to just stay even? When people see their standard of living declining, of course they're going to try "increase their wealth". Hence, the siren song of extraordinary gains made possible by flipping houses, or any other kind of speculative behavior is going to entice people, good ones and bad. But, to lay the blame at the feet of this one segment of our population, is to blame the symptom without addressing the cause. I know, "easy riches", the dream of a new Hummer, enticed many stupid people, it also enticed some people who were simply exploiting the rising market THEY DIDN'T CREATE. The market was skyrocketing because there was TOO MUCH MONEY in the economy. Therefore, bash the Fed. I am so tired of people BASHING consumers, wage earners, small investors, realtors, builders, etal, who simply responded in their best interest, or their families best interest, to a system they did not create, BUT HAVE TO SURVIVE IN. EVERYONE IS MOTIVATED BY THEIR OWN SELF INTEREST and if you deny it you're a liar. So let me say it again. That IS NOT THE CAUSE. It's the SYMPTOM. If you want to blame someone, figure out who sowed the seeds for this catastrophe. It's WALL STREET in collusion with our politicians who f'ed us. Don't foment class warfare here. Let's be a little more discerning, dscriminating, than they were in the French Revolution. Please, shooting at the easy targets rarely hits the generals who ordered the battle.
Hey Happy Snapper, don't rag on Disco or me and the Bee Gees will come over and bloody your mouth!
Hi there freaky bastards.
Liked this article:
>Healing takes time, but that is not part of our new administration's plan to fix the real estate market. Instead, like his predecessor George W. Bush, the Obama team feels it is better to artificially prop up home prices at an unsustainable level rather than have them retreat to a price that can be supported by the free market. But then again, isn't this just more evidence that the idea of free market capitalism is being trampled—by both parties.
http://www.marketoracle.co.uk/Article8794.html?ref=patrick.net
Anyone know a good lawyer?I'm on the run right now looking foe a house to buy.
I haven't read any of these books, but I am going to take a stab and say that they could all have the words "flipping houses" replaced with "mortgage fraud," which would have been more appropriate.
In addition to the Barney Franks of the world and Housing, RealWhores and REIC, not to mention the corrupt and useless government at all levels here's another look at why America is literally dying. Its' a good clip or I wouldn't waste your time. Belly up to the Bar, NASCAR Goobers. You can't get THIS at Wal-Mart...
http://www.cbsnews.com/video/watch/?id=4632991n
Holy Jumpin Stupid Americano!
DIE U PIGS
Sashers,
Important factoid:
Kids that Fish and Hunt don’t riot
Grown-ups busy building a better future for their children don’t riot
Belligerent Eurotards riot.
Hey did anyone else catch Barney Frank on TV last night saying the thieving CEOs have received a formal public toungue lashing so the outrage can move along now. They been punished let's move ahead now, we'll make sure the don't steal anymore billions.
How funny!
Note to Barney:
It will not be over until they give ALL the money back and are sporting orange outerwear!
GT Charlie
Hey Keith,
How's that Obama vote treating you?
FBs will now be getting their mortgages paid for by your tax dollars thanks to THE GREAT LEADER's new bailout plan.
Thank you Keith. And thank you liberals everywhere.
Now comes the handouts to the over-leveraged...I am telling anyone who will listen that if you owe more than you feel like paying back there has never been a better time to stop making payments.
As I see it, gradually people felt it was safe to give up savings, paying one thing off before buying more, putting aside, repairing, hanging onto a car until you had a really good down payment saved and the car had gone as far as possible.
I think credit and lending from non-traditional sources was the basic cause. Banks originally made reasonable profits from the standard model: almost 20 percent in reserves, stringent lending standards. The seventies were hard and the early eighties. I think TPTB behind the scenes realized they had to come up with something new.Being Republican/business years they didn't want to give people higher wages; I think the Great Society pretty much made them choke, so they went underground. Credit cards, that's it, we'll do credit cards. People didn't have to save; banks made a good profit. But they had to lower capital requirements of banks in pretty direct proportion to the amount of credit being handed out to make up for decreased savings.
And to make sure they could keep churning the money through the system: use and start more non-traditional banks.Don't have to use FDIC. (More for them). Don't have to follow banking regulations. Lots of room to play.
It's nice not to have to worry about money. That's what a credit card does for people. But it's oh so tempting.And there are those days when one is depressed.
For every 100K paid for a house over 30 years you pay a multiple I think of about 2.5 +/-. Can you imagine how much you'll pay for 40 years. No one who's realistic about their income will ever be able to pay for a house because that will keep the prices jacked up way out of proportion to ability to pay. And salaries are going down, and credit is being withdrawn. According to one of the testifying bankers yesterday, it's the non-traditional lenders which are not lending. Many are going to fade.
We're trying to keep people employed by keeping the game going, but the game that built it up this far was made of distorted rules. So what do we do?
It doesn't really matter what is done right now. I don't think any combination can stop the coming implosion of everything.
I think most people felt it was safe to go along with anything questionable because it looked like there were so many things going well, it would take care of anything which might go wrong.
And THATS where I blame the media, the spin doctors, advertising: the ones with the power to choose who gets to speak. Virtually any caveat was shouted down, and it has begun again, or has anybody noticed that? Obama is being sandbagged. Rove is still at work, or I'll eat my hat.
The main technique of those who've had the power these last 25 years or so think of what they want to do, and accuse the other side of doing it with such repetiveness,
that subconsciously people buy it.
Oh, we are so damned.
grandma pkk
anon @5:34,
How so? cash4gold is trying to convince you to sell stuff. Those books are trying to convince you to buy stuff.
Besides very low interest rates for too long, lying, and risky loans that everyone up the ladder could pass off and have no responsibility for, and a general culture of get it while you can, as much of it as you can and to hell with personal resonsibility(and he who has the most toys wins idiot mentality),
whew ,
the real damage was/will be done I believe by the the Credit Default Swaps market, which was essentially shorting the mortgage market - placing bets that the bad mortgages would fail, with astronomical payoffs if they did fail. Lot's of incentive to do this if you knew the mortgages were bad, which anybody in the industry did know. This market was huge-(60 trillion I have read) and highly leveraged.
So there was incentive to bet against the mortgage market and against the high risk home buyers. This was the shadow, unregulated market that Tim Geithner knows all about. This will do the biggest damage I believe.
This and the fact that we can't pay our debt to China. (They financed it.)
Little Housing Panic On the Prarie:
http://www.mcsweeneys.net/2009/1/7schorn.html
Is it possible to get the gambling out of the markets? I do not want to "invest" (what a joke) until that happens. Didn't Warren Buffet warn us about derivatives? He was right.
People read the most useless self help books.
Is anyone else pissed about the stock market today? It was going down all day, and in the last 30 minutes it made up all it's losses. Disappointing.
Mad Recession!
In my neighborhood, there are still a bunch of morons trying to flip homes. The place next to mine went into foreclosure and sat on the market bank-owned @ 299K for well over a year. Then some tool showed up thinking he was the next Donald Trump, bought the place, trimmed the yard, put some lipstick on the pig and thought he could list it for 360K. Needless to say, the weeds are now growing out of control, and haven't seen one person stop in to look at the place. Are these people completely out of their minds? Do people really think for about a week's worth of work, they can pocket 60 grand. The whole idea of "flipping" a home makes me want to puke. I prey that at some point in the next decade that homes will become a place you live in, and not a get-rich-quick scheme.
P.S. - This is my first post on here. I've been an avid reader for years, and just wanted to say thanks to Keith for all the hard work that he puts into this thing. I wasn't sure what I was going to do when I thought you were gonna give up on it.
Anyone every seen John Thain's $35,000 commode or $1400 rubbish bin.
Wasn't John Thain the straight and arrow guy who was brought in to clean up Merrill Lynch.
http://www.businessday.co.za/
articles/
topstories.aspx?ID=BD4A938789
AS BANKERS were arriving in Washington to absorb some populist rage from a congressional panel, I learnt that 696 individuals at Merrill Lynch got bonuses last year.
When Wall Street decided it was going to market this Great Real Estate Ponzi-Scheme ,flippers were part of the Greater Fool pool . The more the market makers could find
fools for the scheme ,more money for the real money makers .
While it was true that some of the flippers made money ,a good deal of them got stuck holder the bag.
The funny thing is the real estate boom ended up being marketed as everyone becoming a flipper and selling to a greater fool . Keep the big Ponzi -scheme going by the myth that real estate always goes up ,not challenged by the media ,and away we go .
Why anyone would buy those crazy badly done re-models of crap houses and pay a absurd profit to a flipper was insanity .
Flip that House programs made it look so easy .
What was funny was flippers buying places and trying to sell them before they even closed the escrow . I guess you call that BUY TO FLIP ,or a DOUBLE ESCROW . Later on those poor chaps got embroiled in lawsuits with the builders trying to get out of the contract when the market crashed .
Of course most flippers were fraudulent loan liars ,so I don't feel to sorry for them . One should know that if you have to commit a crime to get in on something ,it just might be a risky thing .
Oh well , I guess people were looking for the answer to their financial goals that the society they were living in was not providing ,or easy money is just to tempting . It didn't help that the mass brainwashing of the sheep by the market makers was condoned by all forces .
Also, from what I have read, the CDS market provided huge incentive to make as many risky mortgages as possible - there was so much money to be made if they failed.
John Travolta said...
‘Hey Happy Snapper, don't rag on Disco or me and the Bee Gees will come over and bloody your mouth!’
You friggen Eurotrash punk, cant we resolve this with Dialogue?
Re 'first post', flipper next door comment. Right on.
Anyone who has ever lost a home as a dependent child, been uprooted due to poverty or family collapse has a longing for "home" that lives with you all the days of your life.
I wonder if many people who were so cavalier with their homes, and refinancing, remortgaging had always had a home when they were young, so they took it for granted.
Or did they have poor parents and grandparents who clung to humble tiny places as if they were gold, embarrassing the younger generation. What is it that made so many so reckless with their very shelter? I'll be the day will come when they would be happy for anything: old, unremodeled, tiny,unlovely, as long as it had a roof and doors and windows to shut out the weather.
We haven't even begun to pay for our foolishness, and we don't yet see it as the total folly it was.
grandma pkk
"anon @5:34,
How so? cash4gold is trying to convince you to sell stuff. Those books are trying to convince you to buy stuff."
...to buy stuff so you can sell it at a profit. Cash4Gold's SuperBowl commercial reminds me of the RE bubble because they have now made enough money to pimp their business during the costliest commercial time of the year.
Remember Pets.com? SuperBowl commercials are a great way to tell who will be gone tomorrow. JMHO.
I hate realtors.
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