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'Fannie and Freddie Were Lenders': U.S. Real Estate Bubble Nears Its End
Executive Intelligence Review. ^ | 6/21/02 | Richard Freeman

Posted on 07/15/2002 9:25:42 AM PDT by AdamSelene235

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To: AdamSelene235
"Already in 2001, one out of every ten homes for sale in the United States was priced at $1,000,000 or more. "

B.S. Maybe in Hawaii and parts of CA.

21 posted on 07/15/2002 9:50:14 AM PDT by Rebelbase
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To: Phantom Lord
...35 to 50% of their annual income...

They may mean 35 to 50% of take-home pay.

22 posted on 07/15/2002 9:51:16 AM PDT by DuncanWaring
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To: Petronski
Mr. Chicken Little, pick up the red courtesy phone. Mr. Little, the red phone, please.

Given the GSE's debt to equity ratio of 40 to 1 they are essentially banks without a multiplier restriction. They are pretty much printing money.

Can you explain how to make such a system stable?

23 posted on 07/15/2002 9:51:39 AM PDT by AdamSelene235
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To: Rebelbase
B.S. Maybe in Hawaii and parts of CA.

Well, Cali is 10% of the US right there. In my area(not cali) median houses are $300,000 while median salary is 55,000.

24 posted on 07/15/2002 9:53:46 AM PDT by AdamSelene235
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To: Rebelbase
B.S. Maybe in Hawaii and parts of CA.

And in Fairfield County, CT

25 posted on 07/15/2002 9:54:31 AM PDT by Koblenz
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To: AdamSelene235
On May 28, the 2004 Presidential pre-candidate Lyndon LaRouche told an international webcast audience. . .

One hardly needs to read past that line. Typical quasi-marxist claptrap. Apparently the thought that the law supply & demand (increasing population = increasing demand, limited property available WHERE PEOPLE MOST WANT TO LIVE = limited supply) might have anything to do with increasing housing prices is a thought that has never crossed this author's mind.

26 posted on 07/15/2002 9:55:25 AM PDT by Stefan Stackhouse
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To: Carry_Okie
You are SO right! Bump to the *real* reasons behind the real estate bubble, 'Sustainable Development' and Immigration!
27 posted on 07/15/2002 9:56:36 AM PDT by Black Agnes
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To: Stefan Stackhouse
. Typical quasi-marxist claptrap.

Funny that he is attacking the left's most favored institutions, the GSEs.

28 posted on 07/15/2002 9:57:57 AM PDT by AdamSelene235
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To: Black Agnes
The NWO game is analogous to Musical Chairs.
29 posted on 07/15/2002 9:59:46 AM PDT by Carry_Okie
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To: Stefan Stackhouse
Exactly right. In So. Cal people continue to come, (I wished the wouldn't) but they do. Only so many homes and availble property to go around.

They are NOT making anymore real-estate.

30 posted on 07/15/2002 9:59:51 AM PDT by Joe Hadenuf
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To: AdamSelene235
This article is hysterical (not the funny kind, but the panic kind) and also a bit out in fantasyland.

Take this sentence for example "The banks pre-figure what principal and interest cash stream they want to realize from a mortgage, and then set the price of the house." Since when does the bank set the price of the house? It doesn't, the market does. This is too tin-foily for me to accept.

I agree housing prices are rediculous. What am I to do, though? Sell my house, move to a rental, and wait for prices to go down? I suppose a small minority of people will do that, or retirees or people who's kids have grown and moved out might consider it (in fact that would be smart to downsize)... but the vast majority of us will stay put and ride out the devaluation of homes, which will surely occur once interest rates begin rising again.

All we have to do is lock in these rates, and hope we can keep our jobs and cash flow positive to pay the mortgage during the housing price decline.

31 posted on 07/15/2002 9:59:58 AM PDT by monkeyshine
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To: AdamSelene235
Two points,

1. I believe the inflation of home prices is two incomes equates with homes costing more and

2. I think it is a mistake to live in a home owners association / development. Read the fine print and see exactly who you are agreeing to maintain your common area and just how much they can claim in maintainance fee amounts.
32 posted on 07/15/2002 10:00:28 AM PDT by Greeklawyer
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To: Stefan Stackhouse
One hardly needs to read past that line. Typical quasi-marxist claptrap.

Its also odd that those Marxists at the Wall Street Journal agree with him.

http://www.opinionjournal.com/extra/?id=105001785

33 posted on 07/15/2002 10:01:27 AM PDT by AdamSelene235
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To: DuncanWaring
Well then they should have said that. Big difference between gross and net.

Thats one of the problems with withholding. Very few people actually know what their income is. Do yourself a little study. Stop 10 strangers on the street or 10 coworkers you are comfortable asking.

Ask them "How much money did you make last year?"

Most will answer by saying "Well, I take home..."

Then stop them and say "Thats not what I asked. I asked how much you made." Most will have no idea.

34 posted on 07/15/2002 10:03:24 AM PDT by Phantom Lord
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To: Phantom Lord
Lyndon LaRouche Is a commie that has over the years has tried to remake himself and give every party a try at him. Years ago he even made a run at conservatives in California with a slick mailer to the members of the Central Committee. He only got laughed at and ridiculed for the effort but don't ever count him out, he's slick.

No matter what he does or says, he's still a dedicated communist and socialist.

35 posted on 07/15/2002 10:03:49 AM PDT by dalereed
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To: AdamSelene235
Its also odd that those Marxists at the Wall Street Journal agree with him.

I noticed that too, good point....

36 posted on 07/15/2002 10:04:52 AM PDT by Joe Hadenuf
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To: dalereed
Housing is going to collapse and I think it will be in the near future.

Those with cash and good liquidty will be able to clean up.

I've been sitting back waiting to take advantage of it for three years now.

37 posted on 07/15/2002 10:07:05 AM PDT by dalereed
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To: AdamSelene235
And it was just reported that the DOW is down 306 points. Jezzz....
38 posted on 07/15/2002 10:07:13 AM PDT by Joe Hadenuf
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To: AdamSelene235
What is really scary is the practice of borrowing money against the rising "value" of ones home.

It reminds me of a method of catching monkeys whereby a treat is placed in a box with an opening large enough for a monkeys EMPTY hand .

When the monkey grabs the treat, his fist is too large to pull back out and his own desire keeps him trapped.

39 posted on 07/15/2002 10:08:11 AM PDT by MassExodus
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To: dalereed
I've been sitting back waiting to take advantage of it for three years now.

That's interesting. Your profile shows your in So. Cal. The reason I say this is because three years ago, you could have got a pretty good deal on a home. Not now.... I think you are going to have a long wait. Good luck..

40 posted on 07/15/2002 10:12:49 AM PDT by Joe Hadenuf
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