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The only way the housing industry will eventually survive is w/o artificial help propping it up.....all these tax credits and stuff are just delaying the inevitable....might as well get the bloodbath overwith sooner than later...
Alot more people are going to go down w/the ship, but that's the roll of the dice w/such a roller coaster industry....
Just curious if you have been reading my posts on here for the last 2 months? Clearly you haven't because you would have seen that your preaching to the choir in regards to the expiring tax credits and the artificially lowering of the interest rates and the effect it will have on the housing market when they are gone.
Unfortunately, CouponJack & MMooreCharlotte are both 100% correct (as usual, I must add!!!); the subprime meltdown has demolished home values nationwide over the past 3-4 years (with a few exceptions), and government intervention by the morons most responsible for it won't help at all, but will only delay the arrival of the dreaded 'day of reckoning.'
Lo and behold, the Alt-A mortgage meltdown is next...followed by the commercial real estate meltdown....then credit cards....then the dollar meltdown...then government debt.....
Just curious if you have been reading my posts on here for the last 2 months? Clearly you haven't because you would have seen that your preaching to the choir in regards to the expiring tax credits and the artificially lowering of the interest rates and the effect it will have on the housing market when they are gone.
No, I've been saying it for 2 1/2 yrs here and it was just in addition to what you said about prices dropping. People who think the "help" from Govco in RE are mistaken....
Lo and behold, the Alt-A mortgage meltdown is next...followed by the commercial real estate meltdown....then credit cards....then the dollar meltdown...then government debt.....
There is most likely no Alt-A meltdown because interest rates have remained low. People who are in ARMS have been able to refinance into a lower rate, a similar rate, or a rate that is not that much higher. There are many posts in the Mortgage forum that people have been able to do this. There's an article also about this:
"Other than the ticking time bomb of Pay Option Arms (which is still a huge problem, especially for California), the ARM reset problem has vanished for as long as rates stay low, or permanently if ARM holders roll over into affordable fixed rate mortgages."
There are two problems that Mish, who usually does a pretty good analysis, misses with this. At refinance time, people with these kinds of loans either don't have the income or credit record to qualify for a new loan and/or the home no longer appraises for the the balance since the homeowner most likely has not paid anything towards the equity.
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