House flippers triggered the housing market crash.....not poor subprime borrowers

[Toddsterpatriot]

[ it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided.

Democrats were the minority in Congress at the time dumbass.

and of course he doesn't put up anything to PROVE his point as typical of a liberal sociopath #10 Just because you say it doesn't make it true....

Nancy Patricia D'Alesandro Pelosi (/pəˈloʊsi/ ; born March 26, 1940) is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011.
Nancy Pelosi - Wikipedia
en.wikipedia.org/wiki/Nancy_Pelosi

What part of 2007 didn't you understand, dumbass, opens his mouth inserts foot.

The real estate bubble peaked and burst before 2007, dumbass.

Yeah but the stocks lagged that bubble as people started to panic and there was a sell off. Notice that I waited till 2012 to sell my house, took a good profit and found a 4700 SqFt ,5 bed 5 bath for 475K which now is worth over 600K? It is all about reading the warning signs and taking the RISK of investment with a good chance of GREAT returns. This is what knowledge can bring, but since that requires work, people like you just bitch and moan, while sitting in your parents basement, smoking dope, eating government cheese, watching Netflix on your parents account while trying to get your floosy to come over so you can impress her. I love it when a loser calls me a dumbass.

CMG - Stock quote for Chipotle Mexican Grill Inc - MSN Money

If the real estate disaster could have been prevented by the federal government, Bush and the Republican majority in Congress would have had to have done it.

Not Pelosi in 2007.

Clinton started the ball rolling. Bush made it worse.
Getting the government to help poor credit risks buy a home?
A program only a liberal could love.

 

[Skull Pilot]

As usual, you need to folow the money

House flippers triggered the US housing market crash, not poor subprime borrowers

Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.

Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distribution—and that these borrowers accounted for a disproportionate share of defaults.

As for those with low credit scores—the “subprime” borrowers who supposedly caused the crisis—their borrowing stayed virtually constant throughout the boom. And while it’s true that these types of borrowers usually default at relatively higher rates, they didn’t after the 2007 housing collapse.

Trying to fix the blame to one cause of a cascade failure like the MBS disaster of 2007-2008 ignores the fact that nothing that fails that big has one contributor. Most failures, like in airplane crashes are a series of failures and contributors.

There is plenty of blame to go around, and banks lending to sub-prime borrowers was a large contributing factor. Even if they didn't provide the numbers, they provided part of the panic when people with MBS's realized where the investments were coming from.

It was the subprime market that had those house flippers buying up properties by the dozens. When you could get a house in a 5 year ARM, pay almost nothing for a mortgage, then flip the house making 20 or 30 thousand dollars each time, it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided. But since many minorities had taken up the flipping business, it was a way to have the poor work themselves out of poverty, with the government blessings. I know, because in 2006 I was looking for a house, and when the 5 ARM was offered to me, I saw how it would of been ruinous to me to get locked into one. After 5 years if you aren't out of the house or refinanced it to a 30 year fix, your payments would go through the roof. When the flippers found out that the supply outweighed the demand for housing they couldn't get out of the ARMs and ended up losing more money than they made, causing them to WALK AWAY. You can thank Bill Clinton for the law that allowed subprime lending and those 3 democraps who could of stopped it in 2004.

Sorry....but the crash occurred in 2007
Democrats did not take Congress until January 2007

It was policies in the years leading up to the crash that caused it. Barney Frank, even though he is gay, had no power or authority to influence those policies

The blame does not lie in any one party as much as you want it to.

The Federal Reserve system is the real culprit here. In no other area of government do private citizens wield as much power over people as in our central banking system

 

[rightwinger]

As usual, you need to folow the money

House flippers triggered the US housing market crash, not poor subprime borrowers

Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.

Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distribution—and that these borrowers accounted for a disproportionate share of defaults.

As for those with low credit scores—the “subprime” borrowers who supposedly caused the crisis—their borrowing stayed virtually constant throughout the boom. And while it’s true that these types of borrowers usually default at relatively higher rates, they didn’t after the 2007 housing collapse.

Trying to fix the blame to one cause of a cascade failure like the MBS disaster of 2007-2008 ignores the fact that nothing that fails that big has one contributor. Most failures, like in airplane crashes are a series of failures and contributors.

There is plenty of blame to go around, and banks lending to sub-prime borrowers was a large contributing factor. Even if they didn't provide the numbers, they provided part of the panic when people with MBS's realized where the investments were coming from.

It was the subprime market that had those house flippers buying up properties by the dozens. When you could get a house in a 5 year ARM, pay almost nothing for a mortgage, then flip the house making 20 or 30 thousand dollars each time, it was a lucrative business, up to the 2007 debacle, that Barney Frank, Maxine Waters, and Chris Dodd could of avoided. But since many minorities had taken up the flipping business, it was a way to have the poor work themselves out of poverty, with the government blessings. I know, because in 2006 I was looking for a house, and when the 5 ARM was offered to me, I saw how it would of been ruinous to me to get locked into one. After 5 years if you aren't out of the house or refinanced it to a 30 year fix, your payments would go through the roof. When the flippers found out that the supply outweighed the demand for housing they couldn't get out of the ARMs and ended up losing more money than they made, causing them to WALK AWAY. You can thank Bill Clinton for the law that allowed subprime lending and those 3 democraps who could of stopped it in 2004.

Sorry....but the crash occurred in 2007
Democrats did not take Congress until January 2007

It was policies in the years leading up to the crash that caused it. Barney Frank, even though he is gay, had no power or authority to influence those policies

The blame does not lie in any one party as much as you want it to.

The Federal Reserve system is the real culprit here. In no other area of government do private citizens wield as much power over people as in our central banking system

I never claimed the blame belonged to one party

Merely refuting the bullshit that blames it on the homo

 

[Muhammed]

The real estate boom was a get rich quick scheme
Houses ALWAYS go up in value, no way you could lose. If you buy now, it will be worth $50,000 more in six months

So the house you bought for $150,000 is now worth $350,000. Why not refinance and take that extra $200,000 and buy and sell some properties? What do you have to lose?

It was not poor people buying and selling properties

It was people like me who saw what was going on.

 

[Muhammed]

What a lot of people didn't realize is that those infomercials claiming that you could buy houses with no down payment and then sell them a few months later for a huge profit were not some bullshit get rich quick scheme. Many people were doing it and making a lot of money.

The people who got fucked were the ones who thought real estate prices would skyrocket forever. I saw quite a few rags to riches to rags stories play out.

 

[rightwinger]

What a lot of people didn't realize is that those infomercials claiming that you could buy houses with no down payment and then sell them a few months later for a huge profit were not some bullshit get rich quick scheme. Many people were doing it and making a lot of money.

The people who got fucked were the ones who thought real estate prices would skyrocket forever. I saw quite a few rags to riches to rags stories play out.

Its all fun and games until someone loses an eye

 

[sealybobo]

As usual, you need to folow the money

House flippers triggered the US housing market crash, not poor subprime borrowers

Mounting evidence suggests that the notion that the 2007 crash happened because people with shoddy credit borrowed to buy houses they couldn’t afford is just plain wrong. The latest comes in a new NBER working paper arguing that it was wealthy or middle-class house-flipping speculators who blew up the bubble to cataclysmic proportions, and then wrecked local housing markets when they defaulted en masse.

Analyzing a huge data set of anonymous credit scores from Equifax, a credit reporting bureau, the economists found that the biggest growth of mortgage debt during the housing boom came from those with credit scores in the middle and top of the credit score distribution—and that these borrowers accounted for a disproportionate share of defaults.

As for those with low credit scores—the “subprime” borrowers who supposedly caused the crisis—their borrowing stayed virtually constant throughout the boom. And while it’s true that these types of borrowers usually default at relatively higher rates, they didn’t after the 2007 housing collapse.

Don't you feel like we are doing it again? Houses are so expensive right now. Overpriced is what I hear most people saying. A lot of people who don't have a home say now is not the time to buy. Another crash is coming. Yet here we are everyone paying over the asking price for homes. My girlfriend just purchased a home I would say is worth $100K. She paid $200K for it.

Won't it suck for everyone who purchased a home this year when prices go back down?

Home Prices Are Now Higher Than The Peak Of The 2000s Housing Bubble. What Gives?

A new study helps to explain the dynamics of our bonkers housing market.

www.npr.org

Even before the pandemic pushed the U.S. housing market into overdrive, the price of the average American home was on a rocket ride, climbing more than 50% between 2012 and 2019. It was the third biggest housing boom in American history. Then came the pandemic, marked by a buying frenzy and a selling freeze, which created a supply-demand mismatch that made the price boom go into warp speed. The average price of American homes, in real terms, is now the highest it's ever been — even higher than the peak of the housing bubble in 2006 before it crashed 60% and bottomed out in 2012.​

Now that home prices have surpassed the peak that preceded the 2000s housing crash, many people are worried. Are we in another bubble? Or maybe the housing bubble a couple decades ago wasn't really a bubble? If so, then why was there a crash?

A new study by economists Gabriel Chodorow-Reich, Adam M. Guren and Timothy J. McQuade helps to explain the dynamics of our bonkers housing market. It has the perfect title: "The 2000s Housing Cycle With 2020 Hindsight."

They say it could in part be because so many people are now working from home.

 

[sealybobo]

What a lot of people didn't realize is that those infomercials claiming that you could buy houses with no down payment and then sell them a few months later for a huge profit were not some bullshit get rich quick scheme. Many people were doing it and making a lot of money.

The people who got fucked were the ones who thought real estate prices would skyrocket forever. I saw quite a few rags to riches to rags stories play out.

And if my buddy would have just continued paying off his mortgage in the 2000's, eventually the value of his condo would have gone back up and today it would be worth $50,000 more than what he paid for it. He walked away because it wasn't worth $70,000 anymore. Now it's worth $150K. Idiot. LOL

 

[rightwinger]

Don't you feel like we are doing it again? Houses are so expensive right now. Overpriced is what I hear most people saying. A lot of people who don't have a home say now is not the time to buy. Another crash is coming. Yet here we are everyone paying over the asking price for homes. My girlfriend just purchased a home I would say is worth $100K. She paid $200K for it.

Won't it suck for everyone who purchased a home this year when prices go back down?

Home Prices Are Now Higher Than The Peak Of The 2000s Housing Bubble. What Gives?

A new study helps to explain the dynamics of our bonkers housing market.

www.npr.org

Even before the pandemic pushed the U.S. housing market into overdrive, the price of the average American home was on a rocket ride, climbing more than 50% between 2012 and 2019. It was the third biggest housing boom in American history. Then came the pandemic, marked by a buying frenzy and a selling freeze, which created a supply-demand mismatch that made the price boom go into warp speed. The average price of American homes, in real terms, is now the highest it's ever been — even higher than the peak of the housing bubble in 2006 before it crashed 60% and bottomed out in 2012.​

Now that home prices have surpassed the peak that preceded the 2000s housing crash, many people are worried. Are we in another bubble? Or maybe the housing bubble a couple decades ago wasn't really a bubble? If so, then why was there a crash?

A new study by economists Gabriel Chodorow-Reich, Adam M. Guren and Timothy J. McQuade helps to explain the dynamics of our bonkers housing market. It has the perfect title: "The 2000s Housing Cycle With 2020 Hindsight."

They say it could in part be because so many people are now working from home.

Housing prices have been stagnant for almost 15 years. All of a sudden they jump $100,000 for no real reason.

I always wondered why more people were not buying houses.
Prices were low and interest rates were at 4 percent.

Now, with prices going up every month, they are scrambling to buy houses at inflated prices.

 

[sealybobo]

Housing prices have been stagnant for almost 15 years. All of a sudden they jump $100,000 for no real reason.

I always wondered why more people were not buying houses.
Prices were low and interest rates were at 4 percent.

Now, with prices going up every month, they are scrambling to buy houses at inflated prices.

I agree. My brother could have upgraded his home during the crash he would have made a fortune but he decided to stay put. Probably because he didn't see this coming.

I don't get it either. The one explanation they gave is people are moving out of the cities and to the burbs.

People are leaving NY and working from Florida remotely. I understand a lot of Americans are migrating down south where things are cheaper. But I'm in MI and the housing market is crazy here too. This is a state you would think people are leaving. And a lot of people are choosing to rent.

It could also be this. Very few new homes are being built. No place left to build. So that's making existing homes more valuable?

 

[rightwinger]

It could also be this. Very few new homes are being built. No place left to build. So that's making existing homes more valuable?

I have houses in NJ and MD. What I can’t believe is the number of new developments going up when there has been no building for 15 years and the prices of raw materials has shot through the roof

 

[sealybobo]

I have houses in NJ and MD. What I can’t believe is the number of new developments going up when there has been no building for 15 years and the prices of raw materials has shot through the roof

Do you vote in NJ and MD?

 

[rightwinger]

Do you vote in NJ and MD?

NJ

 

[sealybobo]

NJ

You must not be a Democrat. A good Democrat would vote in both states. LOL.

 

[HenryBHough]

On moral grounds I avoid borrowing but on intellectual grounds I recommend it for those with different feelings:

If you borrow now and use the proceeds to buy durable assets that can readily be converted to cash....like toilet paper or ammunition....you can be certain the durable assets will appreciate whilst the Xiden Bullshit Bucks will decline in value and more will be handed out in the name of reparations or equality or whatever. So money gets cheaper and you will effectively be repaying the borrowed money with printing press money whose purchasing power will be a fraction of what it was when you borrow the cash.

Once I would have recommended the purchase of condoms in bulk as like everything else they'll be in increasingly short supply and can be sold in small quantities for 2-3 times more than originally paid for them in bulk.

But no more. 1. With Covid to "worry" about who's afraid of a little Syph? and 2. Why pay for birth control when abortions (Demopcrat birth control) are free?

Toilet paper - cheaper to wipe yourself with BidenBucks but the real stuff doesn't sting.

 

[my2¢]

Makes sense to me. Once Bush cut taxes and the Middle East wars commensed it stuck me at the time that a lot of these home buyers were betting on inflation. Not the inflation we see today but the kind that was easily remembered back then, the kind between 1970 and 1980 when a $36,000 house shot up to more than $100,000.