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

To: GraceZ who wrote (48740)	1/4/2006 3:13:41 PM
From: John Vosilla	Read Replies (1) \| Respond to of 110194

"The leverage one can employ is still every bit as breathtaking as it was back when my father bought his first house with the help of a generous veteran benefit back in 1952." Only it has expanded to just about everybody with a pulse and don't forget the I/O and option ARMS that put too many in bubble markets into property they can't really afford. Oddly most that do this are in bubble markets that think they'll be bailed out on the back end by appreciation. Then you have the incredible dynamics available to all in the cheap markets in the heartland where RE opportunities today might be the best of all, few think property will ever go up and using leverage and financing available today will secure your financial future..

To: GraceZ who wrote (48740)	1/4/2006 4:53:15 PM
From: ggamer	Read Replies (2) \| Respond to of 110194

"The idea that people have been taking money out of RE in the last five years is totally in conflict with the stats. They have more of their assets in RE than ever before both in percentage of household assets and in aggregate." My cousin, and my brother-in-law are both under 35 years of age and together they own 18 properties in SF Bay Area. Eight of the properties are over $800K and 4 are over $1M. I can assure you that they do not have that kind of savings. They have borrowed from one house and paid the downpayment for the other. When it comes to taxes they either refinance or borrow more to pay the taxes. While some old timers are very conservative with their investments, today's flippers are doing whatever it takes to keep as many homes as they can. They both told me that they are going to sell all their properties this year because they are tired and they want to enjoy life. What that really mean is that they are worried and they know they are going to lose big time. The tide is turning and they are worried.

To: GraceZ who wrote (48740)	1/4/2006 5:29:24 PM
From: Elroy Jetson	Read Replies (3) \| Respond to of 110194

The abundance, and bald-faced nature, of your drug-induced lies and hallucinations never fails to boggle the imagination. As with most addicts, you will always be able to spin additional new lies far faster than a thousand honest people could put right. home.pacbell.net The idea that people have been taking money out of RE in the last five years is totally in conflict with the stats. - Grace Zaccardi .

To: GraceZ who wrote (48740)	1/4/2006 7:28:10 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

The idea that people have been taking money out of RE in the last five years is totally in conflict with the stats. They have more of their assets in RE than ever before both in percentage of household assets and in aggregate. you're getting confused. nominal aggregate value of owned RE is of course up, due to overbuilding, overownership, and overvaluation. consequently, RE as a percentage of assets is up. HOWEVER, equity as a percentage of all RE is in a CONTINUING DOWNTREND; i.e., equity is being extracted even faster than the bubble expands! the charts on equity extraction show it all. at the end of the day, the bubble will collapse and all that will be left is a mountain of debt that will have to be written off by creditors.

To: GraceZ who wrote (48740)	1/4/2006 8:20:56 PM
From: Fiscally Conservative	Read Replies (1) \| Respond to of 110194

"The idea that people have been taking money out of RE in the last five years is totally in conflict with the stats. They have more of their assets in RE than ever before both in percentage of household assets and in aggregate." Therein lies the rub. Most individuals,I know,who are starting out,buying for the first time have my sympathy. These 'homeowners'are carrying an average 350K in debt and taxes to boot. On average,the monthly nut is close to $3500.00 Many are my co workers. Both spouses are working their butts off to keep everything in check. The American dream. A very fragile web we weave.