Should we blame the GREEDY real estate market for our economic mess?

Discussion in 'Politics & Religion' started by gregdavidson, Oct 4, 2008.

  1. alstar70

    alstar70 Peon

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    #21
    No I think the housing market is just a symptom of a great problem.

    In Nov 2006 I wrote an article predicting the coming depression:-

    I've gone further predicting this current economic woes is the tip of the iceberg and we are likely to have the depression:-

    I think we are about to see a major readjustment.
     
    alstar70, Oct 6, 2008 IP
  2. PHPGator

    PHPGator Banned

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    #22
    There are so many factors involved, not just the real estate market. The banks were doing some pretty bad stuff too. My dad is an attorney and he has a client that is 71 years old and lives only on social security. Her husband had too bad of credit so they wouldn't loan him the money. Instead, they loaned this woman $300,000 when she makes near nothing and with no job. Now she is unable to pay the money back. Whether that was her fault for trying for the loan or not, the bank should not be lending people with no job that much money.
     
    PHPGator, Oct 6, 2008 IP
  3. GRIM

    GRIM Prominent Member

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    #23
    Was the loan backed by her house or something?
     
    GRIM, Oct 6, 2008 IP
  4. Mia

    Mia R.I.P. STEVE JOBS

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    #24

    Read this report: "Report of the Special Examination of Fannie Mae" from http://www.ofheo.gov

    It explains exactly how it happened and who is to blame.
     
    Mia, Oct 6, 2008 IP
  5. sarahk

    sarahk iTamer Staff

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    #25
    Exactly! Who wouldn't want the money to make their lives "better" but a) she should have resisted that temptation and b) the lender should have been socially responsible and not lent it. Undoubtedly the lender also has to make payments related to that loan - and so the downward spiral continues.

    I haven't read it yet, but does it cover just the mechanics or does it get into the societal issues? Without the big picture, understanding how markets are exploited etc it's of little relevance.
     
    sarahk, Oct 6, 2008 IP
  6. gregdavidson

    gregdavidson Well-Known Member

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    #26
    Everybody wants to go with the "mainstream" reason why this problem happened but I think everyone should think of this from a different perspective. Sure, some of these lending companies were probably mismanaged but that doesn't mean it's the overall reason why people bailed out on their mortgages. The fact of the matter is that property is just too darn expensive in the U.S compared to what it used to be.
     
    gregdavidson, Oct 6, 2008 IP
  7. Mia

    Mia R.I.P. STEVE JOBS

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    #27
    It gets into the deiberate and intentional manipulation of accounting, earnings targets, and the management (man of whom are on the Obama campaign team now) attempts to interfere with the independent examination of Fannie.

    The report is not partisan. But it is easy to see the partisan participation in the fraud that was taking place. Where is Raines now? Well, he along with James Johnson of Fannie are the ones that have been given Obama economic advice on the housing market. Johnson was also on Obama's VP search team. The head of it infact. Oh, BTW, Johnson got a golden parachute leaving Fannie as well!

    This report is from 2006 btw.

    From that report:

    Remember, this was a government run and government sponsored institution, not a private business. Meanwhile at this same point in time you have people like Barney Frank and Maxine Waters claiming all is fine and Raines is God... Blah, blah, blah...
     
    Mia, Oct 6, 2008 IP
  8. gregdavidson

    gregdavidson Well-Known Member

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    #28
    Actually, I think you can blame the economy that Bush created more than you can blame these loan companies. If it wasn't for the bad economy with high gas prices, inflation, and lost jobs, these companies could've managed themselves without new government regulations and probably would've done just fine. However, they didn't change as the economy changed which is why they got themselves into this mess.
     
    gregdavidson, Oct 7, 2008 IP
  9. sarahk

    sarahk iTamer Staff

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    #29
    Property is only expensive because people perceived they could pay the higher prices.

    Residential Real Estate is as near to a perfect market as you can get.
    • Everyone needs some (either rented or owned) but they have the ability to increase occupancy when times get tough
    • There is a luxury element
    • There are many buyers
    • There are many sellers
    The buyers were manipulated into believing they could pay beyond their means for property. The sellers increased the prices in response.

    Now the market will "correct" itself - but sadly at the cost of the unwary and unwise.
     
    sarahk, Oct 7, 2008 IP
  10. homebizseo

    homebizseo Peon

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    #30
    Bush is the easiest to blame
     
    homebizseo, Oct 7, 2008 IP
  11. Mia

    Mia R.I.P. STEVE JOBS

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    #31
    But of course. Hell, I stubbed my toe this morning on the coffee table, and I blamed Bush. It was raining today; Bush.

    When the sun goes super nova? Bush.
     
    Mia, Oct 20, 2008 IP
  12. GeorgeB.

    GeorgeB. Notable Member

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    #32
    Yeah what the heck are we thinking.

    Hey can you guys name some stuff that Bush has done that is so great for the economy and has us living in splendor as we are now? I'm just a little fuzzy.

    Yay Bush! Anybody want to pitch in with me to get him a going away present?
     
    GeorgeB., Oct 20, 2008 IP
  13. Mia

    Mia R.I.P. STEVE JOBS

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    #33
    Bush lowered taxes and our economy grew. Unfortunately the greed of a few both in Washington and on Wall Street, coupled with the irresponsibility of many on main street toppled much of that growth.

    I'd take a closer look at The study called "Report of the Special Examination of Fannie Mae," and the corruption caused by democrats like Raines and Gorelic. Among these, the false overstating of earnings, huge senior bonuses to people like Raines and his other democratic buddies.

    You can read more here: www.ofheo.gov

    After Clinton took office, between that and the recession in the 90's, I lost my home, my job, basically did not have a pot to piss in. And to make matters worse, Clinton made my taxes from the previous year retroactive, replealing previous Bush/Reagan tax cuts...

    I'm in a home today because I never gave up, went back to school, built a business and received tax cuts and incentives that allowed me to buy my home, hire employees, and otherwise spend more of my own money in places where I felt it would do us best, not where someone felt it should be spread too.

    I honestly do not want to relive the Clinton or Carter years again.

    I am still pissed at Bush for making it rain today though. Its things like that about him that irritate me the most.
     
    Mia, Oct 20, 2008 IP