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Old May 29, 2012, 10:03 AM
Not THAT Ira
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Coupeville, Wa
Joined Jan 2006
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6 Months Ago They Said Things Were Getting Better

Hey! 6 months ago they kept saying things were getting better.

http://www.cnbc.com/id/47597053


This story simply documents what is obvious to most of us. While on a small scale you can obscure market forces by throwing absurd amounts of tax money or expensive regulation at a narrow segment of the economy this is simply not viable on a large scale or long term.
With millions of homes sitting empty and economy flat (or worse) there is simply no way the real estate market can or will recover. Prices will fall to what the market will honestly bear. Then, and only then, will there be any chance for values to begin a real long term rise.

We will see a suckers rally here, little uptick there, maybe even a slight overall trend up for a short time as the administration pulls every Keynesian trick in the book to obscure the difficult facts of economic life but it ain't going to get er done. This because to date almost everything done has been to prevent the market from sorting itself out rather than to allow it.
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Last edited by Real Ira; May 29, 2012 at 11:29 AM.
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Old May 29, 2012, 10:05 AM
Made in the USA
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Joined May 2010
417 Posts
If I wanted America to fail........
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Old May 29, 2012, 10:06 AM
Official Old Git!
Hampshire, UK
Joined Sep 2000
1,395 Posts
Hmmmm... I seem to have recently read that many hedge funds are doing great business, RI - betting on everything going wrong!

(Mind you, it's the same business that created the problems, and are screwing the countries with interest on the debts etc ).

Sounds to me like they've got it nicely sorted!!
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Old May 29, 2012, 11:31 AM
Not THAT Ira
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Coupeville, Wa
Joined Jan 2006
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Originally Posted by Norman Adlam View Post
Hmmmm... I seem to have recently read that many hedge funds are doing great business, RI - betting on everything going wrong!

(Mind you, it's the same business that created the problems, and are screwing the countries with interest on the debts etc ).

Sounds to me like they've got it nicely sorted!!
There are always opportunities to make money in an economic downturn and a few smart and/or well placed people will.
That has zero bearing on the topic.
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Old May 29, 2012, 11:39 AM
Gravity is patient............
Joined Mar 2006
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Originally Posted by Real Ira View Post
There are always opportunities to make money in an economic downturn and a few smart and/or well placed people will.
That has zero bearing on the topic.
Exactly. Shareholders, long or short, have no effect on the success or failure of the business they invest in or bet against. Unless you are claiming some sort of conspiracy, which tends to be a garden path to nowhere.
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Old May 29, 2012, 11:54 AM
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Lyle, WA
Joined Dec 2000
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An economy full of hundreds of millions of net producers trying to claw their way through the morass of regulatory over reach, punitive taxation, social manipulation, and economic distortion induced by the State is not going to 'get better' easily.And when they finally manage to come up with all the new workarounds and backflips necessary to create wealth in spite of all the unjust obstacles placed in their way, it is not a sign the State is responsible for anything but causing difficulty along with inane and needless complexity.
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Old May 29, 2012, 12:07 PM
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Joined Aug 2011
718 Posts
Heck even Zuck turned a buck with the ridiculous offerings of Facebook, which continues to tank.
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Old May 29, 2012, 01:34 PM
Gravity is patient............
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Originally Posted by UlteriorModem View Post
Heck even Zuck turned a buck with the ridiculous offerings of Facebook, which continues to tank.
$28 and change at the time of this posting. Yikes.
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Old May 29, 2012, 02:06 PM
56S
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A house for sale locally is at 54% of the asking price of when it sold last 10 years ago. I really should thank Clinton for that one.
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Old May 29, 2012, 02:27 PM
Out of Time
United States, TX
Joined Jul 2003
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A house for sale locally is at 54% of the asking price of when it sold last 10 years ago. I really should thank Clinton for that one.
That's great!... unless it happens to be yours.
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Old May 29, 2012, 02:31 PM
56S
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That's great!... unless it happens to be yours.
It's actually right on par with the standard of living decrease.
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Old May 29, 2012, 03:20 PM
Not THAT Ira
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Coupeville, Wa
Joined Jan 2006
4,722 Posts
The up side to a reset (which is what we are seeing the market try to do) of the artificially inflated price of real estate is that young families who were often priced out of the market should be able to realistically consider the purchase of a home now. That is if the rest of the economy is allowed to reset also.
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Old May 29, 2012, 04:00 PM
56S
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Since the dollar has been moved to the toilet paper isle, the price of a home is right on par with the consumer's buying power. I do not recall a time in my working career where I made more but bought less.
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Old May 29, 2012, 04:04 PM
Don't look at me like that....
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United States, AR, McDougal
Joined Aug 2005
2,798 Posts
Quote:
Originally Posted by 56S View Post
A house for sale locally is at 54% of the asking price of when it sold last 10 years ago. I really should thank Clinton for that one.
Well considering the last time it sold, it prolly went for three times what it was really worth. Housing is bad for sellers right now, but very GOOD for buyers. Depends on what side of the fence your on, I guess.

Me, I'm smart enough to have never bought a home for more than it was worth. I currently own my 20 yo newly remodled home with no payments.
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Old May 29, 2012, 04:12 PM
It's 5 O'clock Somewhere
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Dayton, OH
Joined Feb 2006
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Originally Posted by 62pilot View Post
Well considering the last time it sold, it prolly went for three times what it was really worth. Housing is bad for sellers right now, but very GOOD for buyers. Depends on what side of the fence your on, I guess.

Me, I'm smart enough to have never bought a home for more than it was worth. I currently own my 20 yo newly remodled home with no payments.
No one has ever bought a home for more than it was worth. If somone was willing to pay that price then it was worth that price.
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