Once Again, there is a Housing Problem

Discussion in 'Economy' started by chase11209, Mar 26, 2007.

  1. chase11209
    Offline

    chase11209 BANNED

    Joined:
    Mar 17, 2007
    Messages:
    1
    Thanks Received:
    0
    Trophy Points:
    0
    Ratings:
    +0
    Is it ignorance? Are they just naive or plain stupid? Once again numbers show that housing is in trouble: letsgobble.com
     
  2. 90K
    Offline

    90K BANNED

    Joined:
    Oct 23, 2006
    Messages:
    1,204
    Thanks Received:
    64
    Trophy Points:
    0
    Location:
    in the back of GW in foggy bottom
    Ratings:
    +64
    And you are actually surprised? Come on it is about money if you hung everyone one of these lenders by the nut sack if they are a male and use your imagination if they were a women guess what? No fore closures because many of these people who applied for loans wouldn’t have qualified in the first place.

    Then all these home builders and I really can’t blame them as much because if the market wasn’t so hot then these homes wouldn’t have been built in the first place you know supply and demand.

    I’m glad I don’t live in one of these mass produced poorly built homes because I bet in 10-20 years these homes will need major structural work do to cheap materials used when they were originally built. I mean theses homes were straight up profit at the 100 to 150 percent range per unit. I bought my house before this crazy frenzy started and I paid 125K for my house and at the peak of this frenzy would have listed for 300K. And I could have sold and made a nice profit but I’d lost it all in a new house due to the market off the Beltway…..

    No we are all greedy and we all will pay the price due to arrogance
     
  3. djones
    Offline

    djones Rookie

    Joined:
    Mar 24, 2007
    Messages:
    8
    Thanks Received:
    0
    Trophy Points:
    1
    Ratings:
    +0
    surely problem persisted there,deliberately nos were ignored by fed,to support for a week,now dow can undergo a corrective move for a week or so.
     
  4. GeeWhiz
    Offline

    GeeWhiz Member

    Joined:
    Aug 25, 2006
    Messages:
    166
    Thanks Received:
    24
    Trophy Points:
    16
    Ratings:
    +24
    The problem is that people started treating houses like an investments instead of a home, because of that the housing market was ran on the bigger fools theory:

    The bigger fool theory or greater fool theory (also called Survivor Investing.) is the belief held by one who makes a questionable investment, with the assumption that they will be able to sell it later to "a bigger fool"; in other words, buying something not because you believe that it is worth the price, but rather because you believe that you will be able to sell it to some one else for an even higher price.

    You have probably seen posts here or elsewhere where Bush cheerleaders say, the housing market is skyrocketing hooray hooray. Even after months of bad news these cheerleaders still haven't got it.

    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aq53ihHYHRPc
     
  5. manu1959
    Offline

    manu1959 Left Coast Isolationist

    Joined:
    Oct 28, 2004
    Messages:
    13,761
    Thanks Received:
    1,625
    Trophy Points:
    48
    Location:
    california
    Ratings:
    +1,626
    i hear this all the time...what are these cheaper materials?
     
  6. 90K
    Offline

    90K BANNED

    Joined:
    Oct 23, 2006
    Messages:
    1,204
    Thanks Received:
    64
    Trophy Points:
    0
    Location:
    in the back of GW in foggy bottom
    Ratings:
    +64
    How about partial boards used everywhere, siding that isn't always the best because it ripples after a few years. Those two for starters can become very costly. Some areas homes are built on top of swamps and very wet areas and the foundations will crack due to settling of the home and the moist ground.
    Lets just say I might be wrong but my 40 year old home is built much better and I can improve efficiency as needed.
     

Share This Page