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

To: Skeeter Bug who wrote (172925)	12/21/2008 4:51:32 PM
From: Schnullie	Read Replies (1) \| Respond to of 306849

ok, agree with some of it but it still reeks mostly of Greenslime to me. "There is little possibility of a housing bubble since all real estate is local."

To: Skeeter Bug who wrote (172925)	12/25/2008 2:39:08 PM
From: Pogeu Mahone	Respond to of 306849

Brillant post. I do not understand how anybody can say the banks were forced to lend to people who could not pay it back. I laugh every time i read that thought. Yet people love that myth. =========================== Schnullie, i think you are evaluating this on the wrong level - the cart before the horse, as it were. a home buyer doesn't dictate terms. i can't go tell someone i'm asking to lend money to me what the terms are going to be. THEY TELL ME. for decades, THEY had reasonable criteria for getting loans. then, all of a sudden, LIARS LOANS became all the rage, as well as absurd financing. what caused that? not the buyers. they don't control the system. the lenders, do. who were the lenders? a giant pool of money so stupid that they didn't even know what they were investing in! the truth is there was so much money asking for mbos that wall street couldn't provide them product. so they created product... using continually lower quality loans. bush gave these people the rope, but they CHOSE to tie it into a noose, wrap it around their neck and jump. bush giving them the money doesn't make them innocent for being so stupid with it. therefore, their actions DIRECTLY contributed to this mess. the home buyers were stupid, but their actions were a symptom. the sickness was that there was so much investment money that it literally overwhelmed available investments and the decision makers made stupid decisions. some of that goes directly to the owner of the cash and lots of it goes to the money manager responsible for the cash. but they DO have responsibility here. imho, anyway.