Housing Prices?

Discussion in 'Economy' started by Orange_Juice, Sep 22, 2008.

  1. Orange_Juice
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    Orange_Juice Senior Member

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    How will this bill solve the fall in housing prices?
     
  2. Zoomie1980
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    Zoomie1980 Senior Member

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    Housing prices will not turn around until demand begins to equate with inventory. So far, in the hardest hit market, inventory still FAR outstrips demand, so expect more slumping home prices for some time yet.

    When a 1500sq ft home on a 1/6th acre plot in San Jose sells for $150,000 the California market will have finally begun reaching stability. The fact such a home still commands over $400,000 means that market still has a LOOOONNNNGGGGG way to go yet.
     
  3. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    It won't.

    It is designed to give liquidity to the idiots who have been loaning out other peoples money around here for the last 50 years, so they can continue to make more loans.

    Essentially, we borrowed up all that we could scrape together to buy rubber dog shit from China and other necessities and paid a small group of people a kings ransom to do the paperwork.

    Pretty stupid, eh?
     
  4. Toro
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    Toro Diamond Member

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    It won't.

    Prices are still too high. Giving people cheaper money to buy an over-valued asset will not stabilize the housing market.
     
  5. Bern80
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    Bern80 Gold Member

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    Maybe some others (or maybe me) are confused here. OJ is asking how this will solve the 'problem' of FALLING home prices.

    First, it depends on how you define 'problem'. It's problematic for sellers right now, but it is very much a buyers market.

    Couldn't one argue that this bailout is going to 'help' the fall in home prices (or keep them from falling)? Afterall as you say, this is going to keep levels in inflated rather then just letting them come off of this enormous bubble they were on top of before.
     
  6. editec
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    editec Mr. Forgot-it-All

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    Minor correction...they weren't loaning out "other people's money".

    They were loaning out money they invented our of thin air thanks to the FED, dude.

    Banks were lending out 40 times as much as their capitalization.

    Wish I could do that. I'd be rich as they were.

    Yup!

    We were born into economic slavery, and told our entire lives were were free men because we had to pay for our own enslavement.

    Yeah, I'd say stupid about covers it.
     
    Last edited: Sep 23, 2008
  7. AVG-JOE
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    AVG-JOE American Mutt Staff Member Gold Supporting Member

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    Are you sure about that number?

    It doesn't surprise me given the players, but I would have guessed about half that... which is still ridiculous.

    It is disgusting.

    -Joe
     
  8. editec
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    editec Mr. Forgot-it-All

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    I'm sure about that number for Lehman.
     
  9. Bern80
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    Bern80 Gold Member

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    Dude, does makeing excuses ever get old for you? You never did answer my question; What are these big bad corporations doing to you SPECIFICALLY, that is keeping you from becoming wealthy?

    Then again, maybe you're right. Many people do pay for their own enslavement, but it isn't the fault of evil corporate America. Most of the time it's their own fault because most people are financial morons. But hey you do what comes easy. Take no ownership whatsoever and keep passing the buck. I'm sure it will aid in your self improvement.
     
    Last edited: Sep 23, 2008
  10. editec
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    editec Mr. Forgot-it-All

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    Dude, I don't know what the hell you are talking about.

    I never said any such thing.

    Take your fastasy debate with that strawman you've invented and shove it up you ass, okay?

    When you address me in the future , don't start out your ignorant posts by trying to put words into my mouth, okay?
     

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