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

To: Mike Johnston who wrote (25995)	12/15/2004 3:49:03 AM
From: Elroy Jetson	Respond to of 306849

I suspect nearly everyone thinks they've accumulated wealth because the price of their home has increased, and most have borrowed against and spent the very floorboards they walk on. . . home.pacbell.net Each year the Fed lends out additional money which doesn't actually exist - and such a surprise! Home prices rise again. That is until they hit the Monetarist wall and no more debt can be forced into the economy - then the de-leveraging collapse begins. Until that time Monetarist Socialism and it's promotional shills like Grace will be the toast of the town. I especially appreciate gpowell's comment, "If only he (John Law) had implemented FDIC, we'd all be speaking French now." Message 20855982 I can only assume his comment was meant as a joke. Who could believe that Monetarism will be more stable this time simply with the addition of a bank insurance Ponzi scheme? As Joseph Schumpeter said, "policy does not allow a choice between depression and no depression, but between depression now and a worse depression later." .

To: Mike Johnston who wrote (25995)	12/15/2004 9:45:21 AM
From: Tradelite	Respond to of 306849

<<I wonder what is the percentage of population that thinks that they are getting richer because their house is getting more expensive ?>> Quite a few people appear to believe this. I've met three of them in the past month. The first two were window salesmen who came to give me an estimate. Had to listen to them walking through the house saying how much the place must have appreciated since I bought it and how it must be worth a "WHOLE" lot of money. My reply: Sure, and it takes a WHOLE lot of money to keep it up to date and livable and pay the taxes for almost 30 years, and the money isn't money until we sell and see the money in the bank, which is no time soon, (and don't get any big ideas about much I'm willing to spend on windows). End of conversation, except for listening to them talking about how much their own homes have grown in value. Lo and behold, only days later, I found myself listening to the same type of clueless person who arrives to make a minor furnace repair. All he could talk about was how much the house and land must be worth--and had the guts to press me two times for an estimate of what it actually is worth. My reply: that will be for the market to determine at some point in the future, and I don't have a clue. He proceeded to give me a full narrative on how much he paid for his house and how it has doubled in value the past several years. I don't enjoy discussing my potential wealth and presumed affluence with these strangers who spend more time looking at property than at the problems they're hired to solve. However, it appears to go with the territory in my zip code (where I'm sure other homeowners hear the same crapola), and shows how obsessed some people have become with home values. It's still not money, though, until someone agrees to pay it and it's in the bank!