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

To: John Vosilla who wrote (233622)	12/17/2009 10:19:52 PM
From: MulhollandDrive	Read Replies (2) \| Respond to of 306849

what about once in a lifetime low rates for people who have and are saving and approaching retirement and need fixed income to live ? what are they supposed to do? take out loans on non-existent home equity ?? the zirp policy is ensuring nothing...unless you think it will somehow miraculously revive a dead horse lying next to the lending stream low rates are doing NOTHING to ensure GD.2 isn't happening....what are you basing that analysis on? equity market move off the low? check the charts of GD.1....eerily similar... the zirp policy of helicopter ben have done NOTHING to save mainstreet.... as you said, banks aren't lending.... they're taking tarp money and discount window loans using crap collateral to plug holes in balance sheets....what exactly has that done to save the economy from GD.2 other than create zombie banks unwilling to lend (assuming demand....NOT) (oh btw, they're calling it the great 'recession' these days...and it's still ongoing, the so called recovery is a statistical mirage....) as far a lending standards go....well yeah, when it comes to banks with gaping capital holes on their balance sheets...however we have this entity called the FHA running leverage on par with bear stearns and lehman before they imploded... the amazing thing is that even despite the lax lending standards of fha (which accounts for about 50% of all loans now), gov't direct subsidy via home purchase 'credits' we still have an extremely WEAK housing market... get ready for the next wave of foreclosures coming to a market near you 2010 we'll talk again about the rumored demise of GD.2 in a few months or so greenspan/bernanke fueled the bubble and pulled demand forward for at least an entire decade, bernanke has created NOTHING...this is no recovery, it is more of the same flawed logic that debt creation=wealth

To: John Vosilla who wrote (233622)	12/18/2009 12:39:31 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 306849

john, zirp hurts main street b/c it makes speculation more attractive than investment. the banks benefit and the tax payer productive worker gets hammered. retirees are getting clubbed. you act as though the eventual collapse isn't a certainty - it is. the bailouts in 2000 and 2001 led to the collapse we had in 2008. the bailout bubble will just eventually lead to AN EVEN BIGGER COLLAPSE - one that will now take the government of the united states to a place of fiscal ash heaps.

To: John Vosilla who wrote (233622)	12/18/2009 10:19:58 AM
From: neolib	Read Replies (1) \| Respond to of 306849

I happen to agree with your strategy, I was simply noting what I see as a possible obstacle in the future. I'm not one of the doom & gloom crowd around here, but the USA will have some challenging problems going forward that will affect our society on a large scale. We have in general lived beyond our means, our standing in the world is clearly changing with the rise of asia, and we have aging demographic issues. How all this plays out and what impacts it might have for longer term investing interests me.