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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (37503)	8/1/2005 1:45:55 PM
From: GST	Respond to of 110194

I was flying yesterday and sitting beside a guy with a nice house near the beach at Indian Rocks Florida -- he was thinking of selling his house and moving up to live by a lake in South Carolina. He has put out a few feelers on possible buyers and one dropped by last week to see the house. The prospective buyer wants to buy it and rent it out. The seller tried to explain the huge negative cash flow that the buyer would incur using it as a rental -- but the buyer would not hear it. Very risky decisions are being made by the "happy frogs" and it just seems like a shame to me that there are so many people out there facilitating this process. We don't have rest stops on the interstate highways dispensing tequila and extolling the benefits of alcholol as a means to relax while driving, but we do have people handing out other people's money and extolling the virtues of buying real estate out of fear of "missing out". The conduct of the lenders and the brokers is, in my view, unethical. As for the Fed, I cannot imagine how they expect this to end any other way than badly. I value and appreciate this thread for its factual contributions to my understanding of the risks building in the credit system and the markets that are being badly distorted by the overextension of credit.