Housing bubble 2008

Discussion in 'Economy' started by Euro, Jul 30, 2012.

  1. Euro
    Offline

    Euro Senior Member

    Joined:
    Aug 27, 2011
    Messages:
    316
    Thanks Received:
    25
    Trophy Points:
    51
    Location:
    Scandinavia
    Ratings:
    +26
    How was the mood before the housing bubble in 2008? Did Bush see it coming?

    Did people complain about high housing prices?
    Did people complain about high building costs?
    Did you see the bubble coming?

    Did you see it coming and did you get affected.? Did people have to much debt?
     
  2. Caroljo
    Offline

    Caroljo Gold Member

    Joined:
    Jun 2, 2009
    Messages:
    6,596
    Thanks Received:
    1,175
    Trophy Points:
    200
    Location:
    Michigan
    Ratings:
    +1,337
    The Bush administration tried to warn them back in 2004/2005 (in that area)...Congress at the time (mostly democrats and Barny Frank) refused to listen.

    [ame=http://www.youtube.com/watch?v=iW5qKYfqALE]Barney Frank in 2005: What Housing Bubble? - YouTube[/ame]

    I have no idea about your other questions and what other's thought...but i know it affected me, our house appraisals fell almost by half! So you can thank the democrats in Congress at the time, they were warned and said "everything is just fine".
     
  3. Wiseacre
    Offline

    Wiseacre Retired USAF Chief Supporting Member

    Joined:
    Apr 8, 2011
    Messages:
    6,025
    Thanks Received:
    1,192
    Trophy Points:
    48
    Location:
    San Antonio, TX
    Ratings:
    +1,194

    I saw it coming, it should've been obvious that the home prices were all out of whack. No one knew for sure when it would pop, but there as no question that the bubble would burst.

    I seem to recall Bush and the repubs tried to legislate more oversight over the mortgage industry, but it got shot down. That bubble was a long time in the making and both sides of the aisle were complicit.
     
  4. expat_panama
    Offline

    expat_panama Silver Member

    Joined:
    Apr 12, 2011
    Messages:
    2,461
    Thanks Received:
    252
    Trophy Points:
    98
    Ratings:
    +253
    --especially considering the fact that prices had stopped growing two years earlier and were falling since the beginning of '07. By mid '08 real estate values had already lost $5T --20%!
    [​IMG]
     
  5. onecut39
    Offline

    onecut39 VIP Member

    Joined:
    Dec 3, 2008
    Messages:
    1,523
    Thanks Received:
    140
    Trophy Points:
    83
    Ratings:
    +150
    Economists were writing about the housing bubble and its inevitable bust as far back as 2004.

    Where there is money to be made everyone thinks they will get out before the bust. Politicians hope it lasts beyond the next election. Most don't make it.

    "Only a fool waits for top dollar"
    ............................................Joseph P Kennedy.............................
     
  6. Politico
    Offline

    Politico Gold Member

    Joined:
    Jul 5, 2011
    Messages:
    13,855
    Thanks Received:
    937
    Trophy Points:
    175
    Ratings:
    +1,491
    Wasn't a surprise to me. I saw it coming in 2001.
     
  7. Rshermr
    Offline

    Rshermr VIP Member

    Joined:
    May 30, 2012
    Messages:
    5,804
    Thanks Received:
    287
    Trophy Points:
    85
    Location:
    LaConner, WA
    Ratings:
    +855
    Any data to support your claims??
    Honestly, all I can remember is Bush and the repubs bragging about home ownership numbers increasing and Greenspan telling anyone who would listen that the housing market was bomb proof.
     
  8. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    I saw it coming, made nearly a million off of it from speculators and got out and bought Gold Eagles for about $550.
     
  9. uscitizen
    Offline

    uscitizen Senior Member

    Joined:
    May 6, 2007
    Messages:
    45,941
    Thanks Received:
    4,791
    Trophy Points:
    48
    Location:
    My Shack
    Ratings:
    +4,807
    I do recall the right bragging about rising home ownership numbers and the economy was doing so great.
    IN July 2008 didn't McCain say the economy was fundamentally sound?

    [ame="http://www.youtube.com/watch?v=GkAtUq0OJ68"]http://www.youtube.com/watch?v=GkAtUq0OJ68[/ame]
     
    Last edited: Jul 31, 2012
  10. AquaAthena
    Offline

    AquaAthena INTJ/ INFJ

    Joined:
    Feb 16, 2010
    Messages:
    15,453
    Thanks Received:
    11,061
    Trophy Points:
    2,265
    Location:
    ♥ TEXAS ♥ in Spirit
    Ratings:
    +12,342

    A September 11, 2003 New York Times article shows that President Bush proposed “the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.” His proposal: An agency within the Treasury Department to supervise mortgage giants Fannie Mae and Freddie Mac.


    Fearing that mortgages would no longer be available to people who were unable to pay them back, Democrats eventually killed the proposal. The current meltdown in the mortgage industry is a direct result of giving mortgages to people who could not pay them back, a practice protected by Congressional Democrats.


    Both entities were recently taken over by the government, a move that puts trillions of taxpayer dollars at risk.


    More:



    http://www.nytimes.com/2003/09/11/business/new-agency-proposed-to-oversee-freddie-mac-and-fannie-mae.html



    I believe there has been more alarm raised about potential unsafty and unsoundness [of Fannie Mae and Freddie Mac] than, in fact, exists."- Barney Frank... 9/25/2003

    The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do NOT see. Barney Frank---9/11/ 2003

    I want to roll the dice a little bit more in this situation towards subsidized housing."--Barney Frank---9/25/2005


    "These two entities--Fannie Mae and Freddie Mac---are not facing any kind of financial crisis." Barney Frank -- 9/11/2003


    "Fannie and Freddie are fundamentally sound, they are not in danger of going under----I do think their prospects of going forward are very solid." -- Barney Frank-- 7/14/2008
     
    • Thank You! Thank You! x 2
    Last edited: Jul 31, 2012

Share This Page