Posted on 07/15/2002 9:25:42 AM PDT by AdamSelene235
B.S. Maybe in Hawaii and parts of CA.
They may mean 35 to 50% of take-home pay.
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?
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.
And in Fairfield County, CT
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.
Funny that he is attacking the left's most favored institutions, the GSEs.
They are NOT making anymore real-estate.
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.
Its also odd that those Marxists at the Wall Street Journal agree with him.
http://www.opinionjournal.com/extra/?id=105001785
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.
No matter what he does or says, he's still a dedicated communist and socialist.
I noticed that too, good point....
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.
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.
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..
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