The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Patricia Trinchero who wrote (113436)	3/29/2008 3:12:29 PM
From: Hawkmoon	Read Replies (1) of 306849

If one gets cash strapped then your property is useless to you. Yep.. Kind of reminds me of the old stock market adage.. A long term investor is someone who's short term stock trade went down.. One of the aspects that's more frustrating (and should have been recognized by the Fed) is the economic disruption when homes are converted into stocks, with value based upon the derivative value of some security clustering together the respective mortgages. There's a good reason that buying a home should almost always be a long-lasting relationship between the lender and borrower. The lender can determine the value and quality of the loans they have outstanding, not the whims of the equity and bond market. I think we're learning this painful lesson and we're likely to see a gradual return to such practices. And that should restore some value to the smaller regional banks and S&Ls who seem to be less exposed to the sub-prime mess. At least that seems to be the case with one I have on my radar screen (WFSL). Hawk

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