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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (2722)	6/12/2002 10:31:27 PM
From: SOROS	Respond to of 306849

"Conservative financial advisers warn against paying much more than 30% of your income in monthly payments. Any more can leave borrowers vulnerable to a drop in income or job loss." What a bunch of whiners! We're in a recovery from a "mild" (or not at all) recession. Debt IS the new economy. These "conservative" types need to get a life and stop worrying. If you get into trouble, the government will always bail you out. I remain, SOROS

To: Jim Willie CB who wrote (2722)	6/13/2002 10:57:34 AM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

Nice post from a guy in the mortgage lending biz: Message 17597623

To: Jim Willie CB who wrote (2722)	6/14/2002 12:16:24 AM
From: Whitmore G.	Read Replies (2) \| Respond to of 306849

Isn't This What Happened In 1929 to Margin Requirements Beware home buying public! It seems to me that this type of behavior is mirrored by the progressively loser margin requirements that stock brokers bestowed on their stock buying clients during the period before the stock market crash of 29 that led to the great depression. When they pulled the margin requirements back to where they had been previously, well we all know what happened then! Could this be the scenario that is copied in the Real estate market? It seems ever more possible when I read of this type of irresponsibility and greed. It's not rationale to pay $500k for a 1400sft home that is 40 years old like they are doing in some parts of this country i.e. SF-Bay area. Not only that but to pay 0 down and %50 of take home pay on the monthly payment is close to insanity. Doesn't reason, no common sense, tell us that that is the sign of something terribly wrong with the buyers thinking process and the type of market place that would accept it in this economy?