Mohave.net

I’ve avoided posting for nearly a year because of nasty emails from Realtors in the area and because of some family issues. I have decided to ignore the psycho attackers and start posting some links again. There is so much going on in the country these days and sometimes ferreting out opposing viewpoints is difficult at best.

I knew the bubble prices wouldn’t last and would come crashing down, but even I didn’t expect the chaos that has come with the crashing home prices.  Having been through unsustainable housing bubbles before, I didn’t realize how the bubble money was holding up the rest of the economy this time.

No-doc loans.. speculators buying 5,10,20 houses with no money down.. housing atms used for toys, expensive cars, vacations, etc.. artificially low interest rates.. people being allowed to purchase homes at ten or more times their annual income.   Then the lenders turning around and selling those bogus loans as AAA to investors around the world and insurance companies insuring those loans.  Most of those things did not exist in previous bubbles.

In previous housing bubbles, prices increased to lofty heights and then crashed back to their fundamental values, without bringing down the entire worlds economy.  People kept saying “this time is different” but I don’t think they meant different in this way.  I don’t feel sorry for anyone who expected the prices to continue to skyrocket and never fall.  All anyone had to do was question the common sense of that happening.  You didn’t have to be a rocket scientist to realize that housing prices were thundering their way to a cliff.

I’m disgusted with the wealth redistribution that seems to be the current administrations idea of how to improve the economy. The new ideas of today are ridiculous in my opinion.  Now responsible people are going to have to pay for the irresponsible once again.  It seems the government will do anything it can to keep the party going. Destroying the dollar, keeping people in houses they could never afford by any means possible, letting people live in houses payment free for months and even years by preventing the lender from foreclosing, forcing lenders to write down mortgage balances so the irresponsible can afford the houses they had no business buying.

Nothing is off the table now it seems.  We must get people back to spending money they don’t have on things they don’t need.  Good plan…spend your way out of debt.

More people should have paid attention to this snl skit from years ago….