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

To: gpowell who wrote (46955)	1/11/2006 2:32:38 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

Those graphs could be skewed. There are a ton of well of older house rich people with no debt on their now million dollar homes in coastal bubble markets. That can easily mask the problems of highly leveraged younger people today especially in bubble markets who for the first time in history can't afford to make regular payments on a normal amortizing loan anymore.

To: gpowell who wrote (46955)	1/13/2006 6:44:07 AM
From: shades	Read Replies (1) \| Respond to of 306849

If households are directly investing and creating the capital goods that produce housing services because of their desire to consume those services in the future, then, by definition, it cannot be a misallocation of resources. I thought stiglitz and benson were making the case households are squandering wealth given to them by foreigners that will probably be yanked away in the next year or 2? I knew a mexican laborer who bought a nice house in west palm beach - he upgraded it with tile floors - his mexican friend at the bank gave him lots of money in a loan to do this - whose money was he using to do this? He probably would never be able to repay the loan if the house didnt keep going up in value - if things went south - he said so would he - bye bye american sucker - hello mexico. Why did a perfectly good development in asia with beautiful golf courses and trendy toilets go unused? Why was mold growing on the tile floors? It cost hundreds of millions of dollars - Vosilla tells me there are a lot of dark condos in south florida - that they may never be used. (more immigrants can fix this eh) Things that are built and then not used - that was a waste of time, effort, and resources no? Unless it keeps idle hands working - because if they werent working - they might sit around and get into trouble eh? People fear 30% unemployment - I don't get what the big deal is - some people - like pres bush like NOT working - riding thier bike with lance instead of talking nukular with Iran. Stiglitz, benson, buffet - so many others - they are convinced we are on the precipice - harvard-magazine.com People wanted to trade stocks on margin in 1929 and buy fla houses in the late 20's - they had a desire too - why was that later considered a bad decision? How do you measure net worth? Is that how we should value the life, liberty, and happiness of our citizens? My grandpa made moonshine and lived in a shack - he didn't work much - but there are many measures by which his sons said he was wealthier than they were - he lived to be in his 90's and was very happy and didn't have big brother watching him on the satellite - most of his sons died in thier 60's - how is this possible when they had much greater net worth as you are probably defining it than he had. Shouldn't their greater net worth in a more technologically advanced society have made them happier and live longer with more liberty? It doesn't seem to be working out that way. I see el matadors hiding secrets they are working in Iran from anonymous strangers on the internet they are so afraid the MAN gonna tag them for surveillance. My grandpa was never so fearful - hehe.