I'm in favor of a RE crash. I think it will help those that need help (young singles and families)
i am in favor of a crash... but for a different reason.
namely, it will give me an opportunity to save certain overextended citizens and relieve them of their troubled position. if i do my home work correctly, i will come out a winner, (i love win/win's).
as for young singles an families being helped... well, if they could not help themselves under the current free for all home appreciation, (or were unwilling to take the risk), i do not see how under a crash scenario lenders would be more willing to risk lending to... er.. ahem.. young singles and families that would have little to show for in terms of credit history or asset ownership... (unless along the crash you are suggesting certain 'government assistance to the destitute'?).
and ironically, I also think it will help the growth stock market which is so moribund it is killing the startup climate.
now, that has to be a -roflmao-
the stock market is moribund * my theory saz * because the public is not as dumb as you think they are.
after the internet bubble, where.... ahem... the information technology would change the world -yeah right- which it was no more than the war cry banner for the army of sophisticated crooks who run the den of thieves, aka wall street & co. fleeced an entire generation of their hard earned money... (or should i say robbed? * well i cannot say so because the poor souls were willing to be relieved i suppose *)
anyway... even if real estate disappears as an investment option, (which it will not), i doubt the general public will be running back into the loving arms of the shall i say it ? market makers, stock brokers, investment bankers, and the rest of gangsters who inhabit the aforementioned den, only to be -yet again- skinned alive... (and hardly so, as they will have little to show for anyway.)
as for the funding of new ideas... (i.e. 'start-up climate') i doubt that such would be killed dead, because for starters, under the current climate, this has been a benefit to investors since REALLY GOOD IDEAS will continue to be funded by smart money (that is why they are smart -and probably STAY smart)...
no more rubbish funded because there is a sea of fool's money with wild waves of willing cash offered to the next billy gates wannabe aka geek programmer who dumps who-knows-what-untested-program/wild-idea upon the unsuspecting public who becomes an unwilling guinea pig researcher of the same rubbish, which would not see the light of day in the market under normal circumstances (namely, killing start-up climate).
* thank you very much i say *
and for ... la piece d' resistance (french accent required)
real estate is like the law profession to me. Not a wealth creator
i have to ask your definition of wealth creation ?
or
what is your idea of real estate?
meaning....
you consider real estate... strictly buying and selling houses ?
if so, then i would almost agree with you (strictly buying and selling) but even then... you cannot deny that selling for MORE than what one bought (including costs) did not create wealth for the guy who TOOK THE RISK. (not for you obviously)... and certainly it did create wealth for society as there is something called TAX that makes sure the governor takes its bite to feed the needy (including those 'young families of dedicated burro-crats')
however....
because YOU are in the industry that (supposedly) be benefited by the return of idiot money to be guided into funding even the most foolish idea into the public market... DOES NOT invalidate 'wealth creation within the real estate industry'
if you believe that...
to get a piece of land and IMPROVE it by bringing sewer, streets, curb & gutter etc... for industrial purposes (to name one example) so people can BUILD warehouses, offices, stores, shops, *you name it* so subsequently people can WORK inside (instead of their garages, or what ? * a tent * ?)
... is NOT <what did you say?> NOT a WEALTH CREATOR ? and worse... you compare all this work to the same level of a LAWYER ?
excuuuse me ?
you know... i think you have been programming a little too long without a break, it is obfuscating your vision.
as for bubbles....
like i said before... in residential real estate, yes, possibly even strictly single family NOT multi-family. (and in specific locales, NOT ALL markets.) because i can identify certain markets that price appreciation has been the net effect of real demand not only speculative demand.
commercial real estate (namely, land development, construction of office, retail, industrial etc)... i doubt it... above all, valuation of commercial real estate is based on capitalization rates, which are related to long(er) term rates, (primarily 10 year stuff) therefore, their 'bubble' is not as influenced by the whims of an unsophisticated 'speculator' in hopes to 'flip' based on sheer demand for properties without some consideration to the basic arithmetic of a capitalization rate analysis.
in other words... people in commercial real estate are not as dumb (*or worse* non-productive) as you seem to believe given your 'not wealth creator' statement and comparison to lawyers.
lastly... since you seem to be in the word of programmers... here is a request for the benefit of the public...
in an ideal world (if santa claus existed) that when programmers put out a piece of software on the market that it would be a COMPLETE product, instead of letting the public be used as unwilling researchers... and in so doing "find the bugs" (i.e. what works, what is compatible with, etc etc etc etc....)
nothing more irritating than finding a piece of software that HANGS one's computer because of these reasons...
*talk about *non-productive wealth DESTROYER *.... -lol |
