Imagine this, the false price bubble that finally poped is now allowing people to buy homes again. Yet teh fincial know it alls were shocked to see this!
http://biz.yahoo.com/ap/080324/economy.html?.v=3
If people slowed down and got just a little better MPG and tightened there belts ever so slightly and stop listening to the liberal media about haw bad off we are, we will all be just fine.
Are you saying there is no "bubble" and the US is in great financial shape and everything is just the "media"?
I knew the US was in great peril when I went to Maui in 2005 and could not for the life of me figure why people were buying 600 sq ft condo's for $650,000. I rented it it for $125 a night. One fellow down at the BBQ pit (mortage broker) told me how easy it was. If my Fico score was good I too could buy one for nothing down, low teaser rate, and 110% financing. He told me I could buy one now and walk away with $65,000 cash.
I said that's nice but how do I pay for it? His answer was well use the $65,000 for payments for the first couple years and spend the rest, then you can re-fi in 2 years and this place will be worth $800,000.
These unit's are going for $525,000 now and dropping.
This is why the Fed (taxpayer backed) has put up about $600 billion of it's $800 billion already to keep Banks from going broke.
Home prices are off about 10% year over year (nationwide average). With so many people buying in 2004-2007 with little or no money down it doesn't take a expert to realize that states with high home prices have killed the home market. Cal, Fla, Arz, Nev.
