tag:blogger.com,1999:blog-1207581886255094115.post4227259908282297305..comments2024-02-26T05:51:17.859-05:00Comments on Economic Disconnect: Housing Market Support: Enough is Enough AlreadyEconomicDisconnecthttp://www.blogger.com/profile/02802078645713106743noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1207581886255094115.post-82358106623343579682010-03-27T16:58:14.430-04:002010-03-27T16:58:14.430-04:00LT G,
Hey man! How are things?
I thik that depen...LT G,<br />Hey man! How are things?<br /><br />I thik that depending on where you are som eplaces have reached a great buy point for a home. Here in metro Boston things are still WAY overpriced. If you get somehting you can afford easily then I think you should be fine.<br /><br />Don't blow all the gold and silver eggs, I think they will be worth more down the road.<br /><br />So glad to hear from you Sir!EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-58052394924366357742010-03-27T14:16:24.722-04:002010-03-27T14:16:24.722-04:00GawainsGhost,
Hey! You have way too many letter G...GawainsGhost,<br /><br />Hey! You have way too many letter Gs in your screen name! ;)-< Though I do like your method of dealing with problems by samurai sword. Maybe we can just call it Kill Bill for stopping all the stupid bills we see getting passed each year.<br /><br />getyourselfconnected,<br /><br />So now that I am fully sheltered under the USGOV (and work at the pleasure of the president) I will be looking to buy a home in the next 6 months. Currently looking for a good starter home 80K-120Kmax. Good news is I have been saving my golden and silver nest eggs for this very point in life. So the question comes, have I finally lost my mind or have I finally had it with renting. You decide...<br /><br />At least it's a buyers market!<br /><br />LT G.<br /><br />PS: I just love the way my boss spends even more and the USD get stronger. (On paper at least.) JKAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-87037119008452608402010-03-27T11:38:42.029-04:002010-03-27T11:38:42.029-04:00Gawains,
seriously, your input on this is amazing!...Gawains,<br />seriously, your input on this is amazing! Thanks for the great information and insights, I hope all the readers are checking the comments section.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-21941812911895915772010-03-27T11:16:33.662-04:002010-03-27T11:16:33.662-04:00In this economy, with high unemployment, stagnant ...In this economy, with high unemployment, stagnant wages and tightened credit, housing prices have nowhere to go but down. But property taxes keep going up. This is incongruent and unsustainable.<br /><br />The reason why housing prices went up so dramatically, especially in the bubble states (CA, AR, NV, FL), was because of the credit bubble. Easy money, "creative" financing, liar loans and the like, seduced people into taking on way too much debt to buy houses at grossly inflated prices.<br /><br />Prudent borrowers who sold at the height of the bubble made a killing. Imprudent borrowers who bought at the height of the bubble are in a world of hurt.<br /><br />So are prudent borrowers who live in their homes, because the rapid increase in prices led to a dramatic increase in property taxes. This to fund the bloated salaries of public employees.<br /><br />And that really is the rub. Mish harps on this constantly. Public employee unions, their salaries and benefits, are bankrupting cities and states across the country. Yet nothing is being done to address this problem, other than raising taxes on working people and their property.<br /><br />The banks are insolvent, due to their fraudulent lending practices. The government is growing at all levels, while spending way more than it takes in, and paying itself richly I might add. Corruption, fraud and deceit are the rule, not the exception. Rising deficits, debt piled upon debt, health care deform, tax increases on wage decreases. It's insane.<br /><br />You ask what can be done to stop the madness. Well, it's very simple really. The American people must take back their country from the financial oligarchs and their bought-and-paid-for lackeys in government. That won't be easy, nothing ever is, but it is necessary.<br /><br />I close with Travis's letter from the Alamo.<br /><br />"The enemy has demanded a surrender at discretion, otherwise, the garrison are to be put to the sword, if the fort is taken--I have answered with a cannon shot, & our flag still waves proudly over the walls--I shall never surrender or retreat. Then, I call on you in the name of Liberty, of patriotism & everything dear to the American character, to come to our aid, with all dispatch--The enemy is receiving reinforcements daily & will no doubt increase to three or four thousand in four or five days. If this call is neglected, I am determined to sustain myself as long as possible & die like a soldier who never forgets what is due to his own honor & that of his country--VICTORY OR DEATH."<br /><br />Let that be the rallying cry for all real Americans.GawainsGhosthttps://www.blogger.com/profile/16719480047404817864noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-76370261601039410882010-03-27T10:33:00.697-04:002010-03-27T10:33:00.697-04:00I had a good friend of mine call me the other day....I had a good friend of mine call me the other day. He asked if I could write an appraisal for him. I explained that I could not, since I am not a licensed appraiser, but that I could do a market analysis and write a price opinion. Then I asked him why he wanted an appraisal.<br /><br />Well, it seems his mortgage payments (PIT) had gone up over $300/month over the last few years, from just over $700 to more than $1000, and it was killing him. I told him I would look into it.<br /><br />He bought his house for $80,000 some years ago. But now the county is taxing it at over $116,000! Whoa. (Or Woe.) I looked at some comps and estimated a reasonable fair market value for his house at around $105,000. That would be what he could expect to get in the current market, if he had to sell, although that might take several months. But it's still more than $10,000 below what he's paying taxes on.<br /><br />So I printed some information to provide him with evidence and told him to go talk to the county appraisal district. Maybe he could convince them to lower the assessed value. (No small task, mind you.)<br /><br />I also told him the problem might also be the type of mortgage he took out, and that he should look into refinancing to a fixed-rate mortgage at a lower interest rate. Since he obviously has considerable equity in the home (it's now worth $25,000 more than he paid for it), that shouldn't be difficult.<br /><br />For this service I of course charged him nothing. Friends help friends, you know. But I think this example illustrates the larger problem.<br /><br />(con't)GawainsGhosthttps://www.blogger.com/profile/16719480047404817864noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-15129529803562473042010-03-27T10:07:24.719-04:002010-03-27T10:07:24.719-04:00To answer you question, there is one thing that co...To answer you question, there is one thing that could penetrate the small circle jerk of fools running this show. You could take a samurai sword to their ass.<br /><br />Ha! But seriously, GYC, I'm glad you enjoyed The Book of Five Rings. It is the definitive study on strategy, which is why it's required reading at most prestigious business schools. Or it used to be anyway, before the idiots overhauled the curriculum. Still, it is a fascinating book that requires close reading and careful study. The more you read it, the more you learn and understand.<br /><br />Anyway, those were great articles by Kid Dynamite and Automatic Earth. Both are spot on, all of these programs are aimed at bailing out the banks and papering over losses. In other words, covering up the lending fraud and appraisal fraud and brokerage fraud that created this financial mess. Eventually though the losses will have to be realized, and then there will be much wailing and gnawing of teeth.<br /><br />However, I think most commentators are missing something in their analysis. Prudent borrowers who bought their homes before or even after the bubble are not threatened by declining house prices. The golden rule of real estate is this--you only lose money if you are forced to sell. If you 1) bought your house to live in it, and 2) made a substantial downpayment on a fixed-rate mortgage, then the market swings, up or down, really have no effect on you. Just live in the house, pay off the mortgage, and when the market recovers, as it will, then you can sell and recoup your investment and probably even make a profit.<br /><br />Naturally, if you are forced to sell in a declining market, you're going to lose money. Or if you took out a toxic loan--0% down, interest only, adjustable rate mortgage, or even worse rolled over closing costs--well, then you're in deep doo doo. Especially if you bought at the height of the bubble.<br /><br />(con't)GawainsGhosthttps://www.blogger.com/profile/16719480047404817864noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-41160372687339164472010-03-26T23:15:35.027-04:002010-03-26T23:15:35.027-04:00Anon,
LOL!
I can say the "New Moon" fil...Anon,<br />LOL!<br /><br />I can say the "New Moon" film was ok, not as good as the first.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-34746185669616616652010-03-26T22:38:00.081-04:002010-03-26T22:38:00.081-04:00I'd pick a name but I don't know how.I'd pick a name but I don't know how.Anonymousnoreply@blogger.com