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

To: Proud_Infidel who wrote (36384)	7/27/2005 1:12:30 PM
From: BWAC	Read Replies (2) \| Respond to of 306849

Its not the tax code thats to blame, its the current low interest rates combined with the apparently increasing desire by the lenders to make risky loans. 0 Down, Interest Only, Variable 3% rates, etc. Those items have turned the person who could only afford $1000 a month payment on a $150,000 home into a potential buyer for a $300,000 to $400,000 home. The big builders, the early speculators, and to a lesser degree the new flippers have taken advantage of the interest rate/lending climate and steadily driven the $150,000 home upwards in price towards $300,000 or more. Tax code changes won't kill the bubble, Lending practice changes and higher rates will. $400,000 borrowed on Interst only rate only takes $1,800 a month to service. Least until it all blows up.

To: Proud_Infidel who wrote (36384)	7/27/2005 1:48:35 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 306849

Good article, and excellent point. At a time when jobs are moving overseas in droves, we're promoting an unproductive asset bubble in housing. This is robbing other industries of capital investment to fund what is essentially a consumption item. Bad business, and bad for business prospects in the intermediate term and longer. We need to level the playing field to slow down the malinvestment in housing and encourage capital investment in other sectors if we are to have a prayer of taking on the Chindians.

To: Proud_Infidel who wrote (36384)	7/27/2005 2:00:55 PM
From: X Y Zebra	Read Replies (1) \| Respond to of 306849

My guess is that investors would shift more of their money into Corporate America, especially innovative companies that create the wealth of the future. -lol right... and give a second chance to the army of corporate buccaneers to get a second helping in fleecing the populi ? [not to mention the so called... last bastion of true free enterprise in the world namely the market maker who so willingly participated in both the rise of the 'internet boom' (that would change lives), and indeed the fall of the heroic, [but ill-fated] ignoramus and infamous 'internet day trader' the market had its chance to truly make the populi participant of the productive machinery this country has, but the combination of 1. excessive greed by a few corporate bad apples 2. the greed and worse, lack of ethics by the market makers and brokerage community at large promoting companies to irrational levels 3. the disappearing species of ignoramus day trader/hold forever 'investor' does not bode well for the stock market in my opinion. will it disappear ? of course not. in addition, the fact that at least with real estate, you can kick the dirt itself (or the building)... real demand exists, (in specific locations) and a rational strategy seem to reduce risks (not eliminate) in this industry over the risk of handing your hard earned money to a bunch of new breed of robber barons, who will perform nobel prize quality chemistry work by converting hard cash into sh*t... -g besides, it seems that real estate is also helping the economy at large ... for now at least... will it last ? who knows... each one make their own forecasting and act accordingly... prudent financial decisions will always add to the long term viability of any project, real estate related or not. translation = one should not get into excessive debt... when lean times show up, it makes the difference between ...coasting to safety, or bankruptcy... as for... new ventures... ingenuity will still produce innovation and the smart money (who is well equipped to handle the inherent risk) will find the way to fund such ventures. small investors are ill suited to take these risks.