Irvine Housing Blog

@gepetoh

“live up to one’s obligations because “someone” will bail you out”

Can you let me know were the CHECKBOX is that says ‘you’re obligated’ to pay this back?

BTW… you can stop looking now. There isn’t such a checkbox. It is a brainwashing technique that you acquiesce to… sadly most of these things go unchecked.

There is a great movie on youtube about this called ‘esoteric agenda’... search for it. It is quite empowering indeed. Better than any horror movie you have ever seen.

@ geo…thanks, yes it’s sad, but this is the state of America. No one should have been “baild out”, no one, no homeowners, no banksters.

Living up to “one’s expectations”....what does that mean? You live according to what you can AFFORD, and hopefully, not go into debt unless it’s for a gain over the long period.

Banksters have the collateral of the home, it’s not my fault they allowed Wall St. to turn the housing market into a casino game, however, it *is* my loss, and apparantly according to the Federal Gov, your loss as well.

The whole thing stinks and my opinion, as well as how I conduct my life, has changed. RULE OF LAW indeed….yes, but which laws?

Ponzi banking from the Fed? What do these mean exactly? I know what the Fed is doing but how exactly is this a Ponzi scheme? They don’t need a greater fool theory to keep their mechanism going.

Also, if prices haven’t cratered to 1998 levels like everyone on this blog was predicting, then hasn’t the fact that prizes have gone down 4% in your “EPIC FAIL” point to an “EPIC SUCCESS” ....this EPIC FAIL is in light of seasonality (with dec always the worst month of the year) and without factoring for mix of homes determining the median.

It doesn’t have to go back up to pre-bust levels to be a EPIC FAIL. It just doesn’t need to down uncontrollably and thats seems like a “EPIC SUCCESS” in terms of THEIR STATED OBJECTIVE, whether or not you agree with their objective.

When the Federal Reserve Bank can swap a 5 year note with an accounting entry (as needed), and they can do this to the tune of a trillion (plus) dollars, that’s a ponzi scheme.

The only thing that has prevented a complete collapse in real estate has been this massive ponzi scheme at the Fed and the big banks.  Many of us housing bears, believe that the ponzi scheme tricks are presently being overwhelmed by the sheer number of defaults and the lack of credibility of a phony economy.

from wiki:

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors.

You should use a different term.

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The only thing that has prevented a complete collapse in real estate has been this massive ponzi scheme at the Fed and the big banks.  Many of us housing bears, believe that the ponzi scheme tricks are presently being overwhelmed by the sheer number of defaults and the lack of credibility of a phony economy.
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So prices are down 35% from your stats and the fed intervenes to slow down decline and you object because it proved “us bears” predictions wrong?

So you would have preferred the great depression again?

Why don’t “us bears” play out your scenario of a “complete collapse” in real estate and tell us what kind of world this looks like. Where are real estate prices? What is unemployment like? Is there political stability or do we set the ground work for WWIII?

Do enlighten us as to what this world looks like.

So you would have preferred the great depression again?

Great question.  Let me answer it this way ...

I would prefer the great depression II over a Japan style perpetual decline in asset prices at the cost of trillions of dollars thrown on the backs of our kids.

See, we did this ... WE ARE THE ONE’S THAT SHOULD PAY FOR IT!  NOT THE KIDS.  Just think about this ... we’ve spent trillions of dollars in an attempt to prevent a “depression”, and we’re still not out of the woods yet.  Who’s to say, we’re not in a depression now?  Ask an unemployed friend if we’re in a depression.  WTF is a “depression”?

We are going to be the first generation in US history to pass on to the next, a lower standard of living.  It’s simply not fair.  We’re stealing!

lol. trillions thrown on the backs of our children from the bail out? Really?

Why don’t you show us how much debt was created by the fed exactly. The trillions of debt you speak of is being created by social security, medicare and common defense that go up every year when tax revenues are down due to a wtf is depression or recession.

So you think given the choice, the japanese would prefer the great depression and subsequent WWII and hardship over the last 10 years of their terrible economy where they are still are one of the richest nations in the world per capita huh?

Jeez, have some perspective.

Careful what you wish for.

Oh I do have perspective!  We don’t even know what’s going to happen in real terms with our economy.  Remember, we’re by no means out of the woods, however, we’ve spent trillions in an attempt to prop-up asset prices.

Remember what happened last May when the Dow dropped 1,000 points in a matter of minutes, only to come raging back within the hour.  This is the kind of BS that happens when markets are being manipulated.

It’s NOT gonna work.

@lee
c
Please go to youtube and search for ‘debt as money’ then search for ‘the secret of oz’....

People are waking up to the mess… the time is NOW.

So lets see.

From 2006 to 2007, Dec to Dec, 12% drop. From 2007 to 2008, 23% drop again. “Ponzi” scheme implemented and price go UP from 2008, to 2009 and then in 2010, prices have come down 5% from the 2008 PRE Ponzi Scheme days.

double digit drop, double digit drop, then up then single digit drop.

yes, it looks like an EPIC, I mean EPIC, fail according to this….they stop rapid decline in asset prices or deflation as per their own objective. EPIC FAIL!

Obviously if you are statement is going to be that prices will continue to fall further and just as fast as it did in 2006 and 2007, then it will turn into an EPIC FAIL.

But NOTHING you have provided so far points to a failed policy against their stated objective.

not a statement of whether fed should have or shouldn’t have…nor a statement of FED causality or even FED correlation but your EPIC FAIL statements are EPIC UNSUPPORTED by your own data points.

I just don’t have the energy to argue.

Here’s what matters!  From 2005 until late 2007, many people said there was no such thing as a housing bubble.  Some insisting that it was impossible for prices to decline.  They were proven wrong.  When 2008 started, many housing bears thought it would get a lot worse (me being one), because we never anticipated that The Federal Reserve with the US govt would blatantly throw capitalism out the door, in an attempt to manipulate the economy.

The big question is, how/why did so many bears miss the govt/Fed ability to manipulate the economy on such a vast level?  Answer ~ Because we’ve NEVER seen the govt/Fed take on these actions before.  This has been unprecedented, and it’s mocked our once free markets, and jaded many American’s!

I remember commenting on this blog in 2007 that I would expect our government to do everything possible to arrest a serious decline in housing prices (because of the negative feedback loop the decline would create).  Many shot-back that there was not much they could do; that they don’t “control” interest rates and that was really their only tool.  I think we’re all shocked at the many tools they have and have used.

There’s still the tool of mass-refinancing through the agencies regardless of LTV with the prospect of adding underwater portions to the end of a loan (balloons).

We’ll see…