House Flippers Inflated the Housing Bubble

Discussion in 'Economy' started by auditor0007, Dec 14, 2011.

  1. auditor0007
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    auditor0007 Gold Member

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    House Flippers Inflated the Housing Bubble, Report Says

    House Flippers Inflated the Housing Bubble, Report Says | AOL Real Estate

    They're just figuring this out now? I read an article a few years ago that stated that 75% of all new homes purchased in 06 and 07 were sold to speculators.
     
  2. editec
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    editec Mr. Forgot-it-All

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    Cheap money, and a stupid LACK of sensible lending regulations caused the real estate meltdown,

    RE specualtors merely played by the rules of the moment.

    They FLIPPED houses, remember? Meaning they bought them and then SOLD them to people who presumably wanted to LIVE in them.
     
  3. expat_panama
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    expat_panama Silver Member

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    No, that old leftist spin's completely used up and nobody wants more state control of the 'evil rich capitalists'.

    Markets work because we know we make money when we buy at a low price and sell at a high price. Fools who bubbled the peak by buying high got the huge losses they deserved. The way markets don't work is gov't demands for a sales quota to groups that the markets couldn't serve. We don't need articles from party-line media pundits because by now we can all see the historical home prices--
    [​IMG]
    --and the buying spree beginning with the '90's' left-wing war on the "evil bankers" that forced them to sell where they knew they shouldn't.

    Trying now to blame a stupid policy failure on the evil rich isn't going to get anywhere.
     
  4. auditor0007
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    auditor0007 Gold Member

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    All true, but the net effect of so much flipping was that we built too many homes, period. All of a sudden there wasn't anyone to buy because there were too many homes. The only people buying were those trying to flip them. Once it was realized that there was a glut of homes on the market, it all came crashing down.
     
  5. iamwhatiseem
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    iamwhatiseem Gold Member

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    uhhnn....what?
     
  6. iamwhatiseem
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    iamwhatiseem Gold Member

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    This guy must be one of the OWS.
     
  7. expat_panama
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    expat_panama Silver Member

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    That makes sense; explains the 'blame capitalism' bit.
     
  8. iamwhatiseem
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    iamwhatiseem Gold Member

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    I like how Peter Schiff put it - "Wall Street simply drank the alcohol that the government made for them"
    It's like blaming cancer on convenient stores and giving RJ Reynolds and the smokers themselves a pass.
     
  9. Nosmo King
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    Nosmo King Gold Member

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    Do you really think banks have no culpability in the real estate crash? Really? Robo-signing, fictitious numbers on loan applications, mortgage backed derivatives, lack of over sight. Do you really think banks are above reproach?
     
  10. iamwhatiseem
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    iamwhatiseem Gold Member

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    Not to speak for him...but I don't think anyone is saying that.

    Who is most at fault...

    A) The banks and the financial system in entirety that took advantage of the situation provided to "get while the gettin's good".
    B) The amazingly gullible and foolhardy consumers who signed loans that they positively could not afford.
    C) The government that 100% designed the whole apparatus, forced banks to sign loans that they never would have done without that coercion and provided the guarantees on obviously resulting bad loans by a self created sudo government agency using taxpayer funds.

    You tell us.
     

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